Credit Suisse SICAV One (Lux) Prospectus February 2014
Transcript of Credit Suisse SICAV One (Lux) Prospectus February 2014
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
Prospectus 11 February 2014
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
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Contents 1. Information for Prospective Investors ................................................................................................................................................. 3 2. Credit Suisse SICAV One (Lux) – Summary of Share Classes (1) ............................................................................................................... 4 3. The Company .................................................................................................................................................................................. 10 4. Investment Policy ............................................................................................................................................................................ 10 5. Investment in Credit Suisse SICAV One (Lux) ..................................................................................................................................... 11
i. General Information on the Shares ............................................................................................................................................................. 11 ii. Subscription of Shares ................................................................................................................................................................................ 12 iii. Redemption of Shares ................................................................................................................................................................................. 12 iv. Conversion of Shares .................................................................................................................................................................................. 13 v. Suspension of the Subscription, Redemption and Conversion of Shares and the Calculation of the Net Asset Value .................................. 13 vi. Measures to combat Money Laundering ..................................................................................................................................................... 13 vii. Market Timing ............................................................................................................................................................................................ 14
6. Investment Restrictions ................................................................................................................................................................... 14 7. Risk Factors .................................................................................................................................................................................... 17 8. Net Asset Value ............................................................................................................................................................................... 20 9. Expenses and Taxes ......................................................................................................................................................................... 21
i. Taxes .......................................................................................................................................................................................................... 21 ii. Expenses ..................................................................................................................................................................................................... 21 iii. Performance Fee .........................................................................................................................................................................................22 iv. Volatility Fee ...............................................................................................................................................................................................22
10. Accounting Year .............................................................................................................................................................................. 22 11. Appropriation of Net Income and Capital Gains .................................................................................................................................. 22 12. Lifetime, Liquidation and Merger ...................................................................................................................................................... 22 13. General Meetings ............................................................................................................................................................................ 23 14. Information for Shareholders ........................................................................................................................................................... 23 15. Management Company .................................................................................................................................................................... 23 16. Investment Managers and Sub‐Investment Manager .......................................................................................................................... 23 17. Custodian Bank ............................................................................................................................................................................... 23 18. Central Administration .................................................................................................................................................................... 23 19. Regulatory Disclosure ...................................................................................................................................................................... 23 20. Main Parties .................................................................................................................................................................................... 25
Company ............................................................................................................................................................................................................... 25 Board of Directors of the Company ....................................................................................................................................................................... 25 Independent Auditor of the Company ................................................................................................................................................................... 25 Management Company ......................................................................................................................................................................................... 25 Board of Directors of the Management Company ................................................................................................................................................. 25 Custodian Bank ..................................................................................................................................................................................................... 25 Distributor ............................................................................................................................................................................................................. 25 Central Administration .......................................................................................................................................................................................... 25
21. Distribution ..................................................................................................................................................................................... 25 Distribution of Shares in Switzerland .................................................................................................................................................................... 25 Distribution of Shares in Germany ......................................................................................................................................................................... 25 Distribution of Shares in Austria ........................................................................................................................................................................... 26 Distribution of Shares in Liechtenstein ................................................................................................................................................................. 26 Distribution of Shares in the United Kingdom ...................................................................................................................................................... 26
22. Subfunds ........................................................................................................................................................................................ 27 Credit Suisse SICAV One (Lux) CommodityAllocation ........................................................................................................................................... 27 Credit Suisse SICAV One (Lux) Equity Eurozone ................................................................................................................................................... 28 Credit Suisse SICAV One (Lux) Equity Global ........................................................................................................................................................ 29 Credit Suisse SICAV One (Lux) Equity Global Emerging Markets .......................................................................................................................... 30 Credit Suisse SICAV One (Lux) Equity Global Emerging Market Property .............................................................................................................. 31 Credit Suisse SICAV One (Lux) Equity Global Property Income............................................................................................................................. 32 Credit Suisse SICAV One (Lux) Equity Global Security ........................................................................................................................................... 33 Credit Suisse SICAV One (Lux) Equity Global Small & Mid Cap ............................................................................................................................. 34 Credit Suisse SICAV One (Lux) Equity Japan Value ................................................................................................................................................ 35 Credit Suisse SICAV One (Lux) Equity Top of Europe 0/100 ................................................................................................................................... 35 Credit Suisse SICAV One (Lux) European Equity Dividend Plus............................................................................................................................. 36 Credit Suisse SICAV One (Lux) Global Convertibles ............................................................................................................................................... 37 Credit Suisse SICAV One (Lux) Global Equity Dividend Plus ................................................................................................................................. 38 Credit Suisse SICAV One (Lux) IndexSelection Balanced (Sfr) .............................................................................................................................. 39 Credit Suisse SICAV One (Lux) IndexSelection Capital Gains Oriented (Sfr) ......................................................................................................... 41 Credit Suisse SICAV One (Lux) IndexSelection Income Oriented (Sfr) .................................................................................................................. 42 Credit Suisse SICAV One (Lux) Liquid Alternative Beta......................................................................................................................................... 44 Credit Suisse SICAV One (Lux) Liquid Event Driven .............................................................................................................................................. 45 Credit Suisse SICAV One (Lux) Liquid Global Strategies ........................................................................................................................................ 47 Credit Suisse SICAV One (Lux) Liquid Long/Short ................................................................................................................................................ 48 Credit Suisse SICAV One (Lux) Small and Mid Cap Alpha Long/Short ................................................................................................................... 49
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
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1. Information for Prospective Investors This prospectus (“Prospectus”) is valid only if accompanied by the latest key investor information document (“Key Investor Information Document”), the latest annual report, and also the latest semi‐annual report if this was published after the latest annual report. These documents shall be deemed to form part of this Prospectus. Prospective investors shall be provided with the latest version of the Key Investor Information Document in good time before their proposed subscription of shares in the Credit Suisse SICAV One (Lux) (the “Company”). This Prospectus does not constitute an offer or solicitation to subscribe shares (“Shares”) in the Company by anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation. Information which is not contained in this Prospectus, or in the documents mentioned herein which are available for inspection by the public, shall be deemed unauthorized and cannot be relied upon. Potential investors should inform themselves as to the possible tax consequences, the legal requirements and any foreign exchange restrictions or exchange control requirements which they might encounter under the laws of the countries of their citizenship, residence or domicile and which might be relevant to the subscription, holding, conversion, redemption or disposal of Shares. Further tax considerations are set out in Chapter 9, “Expenses and Taxes”. Information about distribution in various countries is set out in Chapter 21, “Distribution”. Prospective investors who are in any doubt about the contents of this Prospectus should consult their bank, broker, solicitor, accountant or other independent financial adviser. This Prospectus may be translated into other languages. To the extent that there is any inconsistency between the English‐language Prospectus and a version in another language, the English‐language Prospectus shall prevail, unless stipulated otherwise by the laws of any jurisdiction in which the Shares are sold. Investors should read and consider the risk discussion in Chapter 7, “Risk Factors”, before investing in the Company. Some of the Shares may be listed on the Luxembourg Stock Exchange. The Shares have not been, and will not be, registered under the United States Securities Act of 1933 (the “1933 Act”), as amended, or the securities laws of any of the states of the United States of America and the Company has not been, and will not be, registered under the United States Investment Company Act of 1940, as amended. Therefore, the Shares may not be directly or indirectly offered or sold in the United States of America or to or for the benefit of a “US Person” as defined in Regulation S of the 1933 Act, except pursuant to an exemption from the registration requirements of the 1933 Act. This Prospectus will not be generally distributed or circulated in India and neither the Company, nor any of the Subfunds described in this Prospectus will be offered for subscription to any residents of India, except as permitted by applicable Indian laws and regulations. Specific provisions may apply with respect to each subfund, as set out in Chapter 22, “Subfunds”. The management company (as described below) shall not divulge any confidential information concerning investors unless required to do so by applicable laws or regulations to the management company.
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
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2. Credit Suisse SICAV One (Lux) – Summary of Share Classes (1)
Subfund (Reference Currency)
Share Class Currency Minimum holding Share Type(2)
Maximum Adjustment of the Net Asset
Value
Maximum sales charge
Maximum management
fee (per annum) (3)
Perfor‐mance fee
Credit Suisse SICAV One (Lux) CommodityAllocation (USD)
“B” USD n/a CG 2.00% 5.00% 1.92% n/a “D” (4) USD 10 shares CG 2.00% n/a n/a (5) n/a “EB” (10) USD n/a CG 2.00% 3.00% 0.90% n/a
“EBH” (6) (10) CHF n/a CG 2.00% 3.00% 0.90% n/a “EBH” (6) (10) EUR n/a CG 2.00% 3.00% 0.90% n/a “EBH” (6) (10) (6) n/a CG 2.00% 3.00% 0.90% n/a
“I” USD 1,000,000 CG 2.00% 3.00% 0.90% n/a “R” (6) CHF n/a CG 2.00% 5.00% 1.92% n/a “R” (6) EUR n/a CG 2.00% 5.00% 1.92% n/a “R” (6) (6) n/a CG 2.00% 5.00% 1.92% n/a “S” (6) CHF 1,000,000 CG 2.00% 3.00% 0.90% n/a “S” (6) EUR 1,000,000 CG 2.00% 3.00% 0.90% n/a “S” (6) (6) – CG 2.00% 3.00% 0.90% n/a
“UB” (11) USD n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) CHF n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) EUR n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) (6) n/a CG 2.00% 5.00% 1.50% n/a
Credit Suisse SICAV One (Lux) Equity Eurozone (EUR)
“B” (9) EUR n/a CG 2.00% 5.00% 1.92% n/a “D” (4) EUR 10 shares CG 2.00% n/a n/a (5) n/a
“EB” (9) (10) EUR n/a CG 2.00% 3.00% 0.70% n/a “EBH” (6) (9) (10) CHF n/a CG 2.00% 3.00% 0.70% n/a “EBH” (6) (9) (10) USD n/a CG 2.00% 3.00% 0.70% n/a “EBH” (6) (9) (10) (6) n/a CG 2.00% 3.00% 0.70% n/a
“I” (9) EUR 1,000,000 CG 2.00% 3.00% 0.70% n/a “R” (6) (9) (6) n/a CG 2.00% 5.00% 1.92% n/a “S” (6) (9) CHF 1,000,000 CG 2.00% 3.00% 0.70% n/a “S” (6) (9) USD 1,000,000 CG 2.00% 3.00% 0.70% n/a “S” (6) (9) (6) – CG 2.00% 3.00% 0.70% n/a
“UB” (9) (11) EUR n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (9) (11) CHF n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (9) (11) USD n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (9) (11) (6) n/a CG 2.00% 5.00% 1.50% n/a
Credit Suisse SICAV One (Lux) Equity Global (USD)
“B” USD n/a CG 2.00% 5.00% 1.92% n/a “D” (4) USD 10 shares CG 2.00% n/a n/a (5) n/a “EB” (10) USD n/a CG 2.00% 3.00% 0.70% n/a
“EBH” (6) (10) CHF n/a CG 2.00% 3.00% 0.70% n/a “EBH” (6) (10) EUR n/a CG 2.00% 3.00% 0.70% n/a “EBH” (6) (10) (6) n/a CG 2.00% 3.00% 0.70% n/a
“I” USD 1,000,000 CG 2.00% 3.00% 0.70% n/a “R” CHF n/a CG 2.00% 5.00% 1.92% n/a “R” EUR n/a CG 2.00% 5.00% 1.92% n/a “R” (6) n/a CG 2.00% 5.00% 1.92% n/a “S” (6) CHF 1,000,000 CG 2.00% 3.00% 0.70% n/a “S” (6) EUR 1,000,000 CG 2.00% 3.00% 0.70% n/a “S” (6) (6) – CG 2.00% 3.00% 0.70% n/a
“UB” (11) USD n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) CHF n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) EUR n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) (6) n/a CG 2.00% 5.00% 1.50% n/a
Credit Suisse SICAV One (Lux) Equity Global Emerging Markets (USD)
“B” USD n/a CG 2.00% 5.00% 1.92% n/a “D” (4) USD 10 shares CG 2.00% n/a n/a (5) n/a “EB” (10) USD n/a CG 2.00% 3.00% 0.90% n/a
“EBH” (6) (10) CHF n/a CG 2.00% 3.00% 0.90% n/a “EBH” (6) (10) EUR n/a CG 2.00% 3.00% 0.90% n/a “EBH” (6) (10) (6) n/a CG 2.00% 3.00% 0.90% n/a
“I” USD 1,000,000 CG 2.00% 3.00% 0.90% n/a “R” (6) EUR n/a CG 2.00% 5.00% 1.92% n/a “R” (6) (6) n/a CG 2.00% 5.00% 1.92% n/a “S” (6) CHF 1,000,000 CG 2.00% 3.00% 0.90% n/a “S” (6) EUR 1,000,000 CG 2.00% 3.00% 0.90% n/a “S” (6) (6) – CG 2.00% 3.00% 0.90% n/a
“UB” (11) USD n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) CHF n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) EUR n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) (6) n/a CG 2.00% 5.00% 1.50% n/a
Credit Suisse SICAV One (Lux) Equity Global Emerging Market Property (USD)
“B” USD n/a CG 2.00% 5.00% 1.92% n/a “D” (4) USD 10 shares CG 2.00% n/a n/a (5) n/a “EB” (10) USD n/a CG 2.00% 3.00% 0.90% n/a
“EBH” (6) (10) CHF n/a CG 2.00% 3.00% 0.90% n/a “EBH” (6) (10) EUR n/a CG 2.00% 3.00% 0.90% n/a “EBH” (6) (10) (6) n/a CG 2.00% 3.00% 0.90% n/a
“I” USD 1,000,000 CG 2.00% 3.00% 0.90% n/a “R” (6) CHF n/a CG 2.00% 5.00% 1.92% n/a
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
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Subfund (Reference Currency)
Share Class Currency Minimum holding Share Type(2)
Maximum Adjustment of the Net Asset
Value
Maximum sales charge
Maximum management
fee (per annum) (3)
Perfor‐mance fee
“R” (6) EUR n/a CG 2.00% 5.00% 1.92% n/a “R” (6) (6) n/a CG 2.00% 5.00% 1.92% n/a “S” (6) CHF 1,000,000 CG 2.00% 3.00% 0.90% n/a “S” (6) EUR 1,000,000 CG 2.00% 3.00% 0.90% n/a “S” (6) (6) – CG 2.00% 3.00% 0.90% n/a
“UB” (11) USD n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) CHF n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) EUR n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) (6) n/a CG 2.00% 5.00% 1.50% n/a
Credit Suisse SICAV One (Lux) Equity Global Property Income (USD)
"A" USD n/a D 2.00% 5.00% 1.92% n/a “B” USD n/a CG 2.00% 5.00% 1.92% n/a
“D” (4) USD 10 shares CG 2.00% n/a n/a (5) n/a “EA” 10) USD n/a D 2.00% 3.00% 0.90% n/a
“EAH” (6) (10) CHF n/a D 2.00% 3.00% 0.90% n/a “EAH” (6) (10) EUR n/a D 2.00% 3.00% 0.90% n/a “EAH” (6) (10) (6) n/a D 2.00% 3.00% 0.90% n/a “EB” (10) USD n/a CG 2.00% 3.00% 0.90% n/a
“EBH” (6) (10) CHF n/a CG 2.00% 3.00% 0.90% n/a “EBH” (6) (10) EUR n/a CG 2.00% 3.00% 0.90% n/a “EBH” (6) (10) (6) n/a CG 2.00% 3.00% 0.90% n/a
“G” USD 1,000,000 D 2.00% 3.00% 0.90% n/a “I” USD 1,000,000 CG 2.00% 3.00% 0.90% n/a “R” CHF n/a CG 2.00% 5.00% 1.92% n/a “R” EUR n/a CG 2.00% 5.00% 1.92% n/a “R” (6) n/a CG 2.00% 5.00% 1.92% n/a “S” (6) CHF 1,000,000 CG 2.00% 3.00% 0.90% n/a “S” (6) EUR 1,000,000 CG 2.00% 3.00% 0.90% n/a “S” (6) (6) – CG 2.00% 3.00% 0.90% n/a
“UA” (11) USD n/a D 2.00% 5.00% 1.50% n/a “UAH” (6) (11) CHF n/a D 2.00% 5.00% 1.50% n/a “UAH” (6) (11) EUR n/a D 2.00% 5.00% 1.50% n/a “UAH” (6) (11) (6) n/a D 2.00% 5.00% 1.50% n/a “UB” (11) USD n/a CG 2.00% 5.00% 1.50% n/a
“UBH” (6) (11) CHF n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) EUR n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) (6) n/a CG 2.00% 5.00% 1.50% n/a
Credit Suisse SICAV One (Lux) Equity Global Security (USD)
“B” USD n/a CG 2.00% 5.00% 1.92% n/a “D” (4) USD 10 shares CG 2.00% n/a n/a (5) n/a “EB” (10) USD n/a CG 2.00% 3.00% 0.90% n/a
“EBH” (6) (10) CHF n/a CG 2.00% 3.00% 0.90% n/a “EBH” (6) (10) EUR n/a CG 2.00% 3.00% 0.90% n/a “EBH” (6) (10) (6) n/a CG 2.00% 3.00% 0.90% n/a
“I” USD 1,000,000 CG 2.00% 3.00% 0.90% n/a “R” CHF n/a CG 2.00% 5.00% 1.92% n/a “R” EUR n/a CG 2.00% 5.00% 1.92% n/a “R” (6) n/a CG 2.00% 5.00% 1.92% n/a “S” (6) CHF 1,000,000 CG 2.00% 3.00% 0.90% n/a “S” (6) EUR 1,000,000 CG 2.00% 3.00% 0.90% n/a “S” (6) (6) – CG 2.00% 3.00% 0.90% n/a
“UB” (11) USD n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) CHF n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) EUR n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) (6) n/a CG 2.00% 5.00% 1.50% n/a
Credit Suisse SICAV One (Lux) Equity Global Small & Mid Cap (USD)
“B” USD n/a CG 2.00% 5.00% 1.92% n/a “D” (4) USD 10 shares CG 2.00% n/a n/a (5) n/a “EB” (10) USD n/a CG 2.00% 3.00% 0.90% n/a
“EBH” (6) (10) CHF n/a CG 2.00% 3.00% 0.90% n/a “EBH” (6) (10) EUR n/a CG 2.00% 3.00% 0.90% n/a “EBH” (6) (10) (6) n/a CG 2.00% 3.00% 0.90% n/a
“I” USD 1,000,000 CG 2.00% 3.00% 0.90% n/a “R” CHF n/a CG 2.00% 5.00% 1.92% n/a “R” EUR n/a CG 2.00% 5.00% 1.92% n/a “R” (6) n/a CG 2.00% 5.00% 1.92% n/a “S” (6) CHF 1,000,000 CG 2.00% 3.00% 0.90% n/a “S” (6) EUR 1,000,000 CG 2.00% 3.00% 0.90% n/a “S” (6) (6) – CG 2.00% 3.00% 0.90% n/a
“UB” (11) USD n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) CHF n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) EUR n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) (6) n/a CG 2.00% 5.00% 1.50% n/a
Credit Suisse SICAV One (Lux) Equity Japan Value (JPY)
“B” JPY n/a CG 2.00% 5.00% 1.92% n/a “D” (4) JPY 10 shares CG 2.00% n/a n/a (5) n/a “EB” (10) JPY n/a CG 2.00% 3.00% 0.90% n/a
“EBH” (6) (10) CHF n/a CG 2.00% 3.00% 0.90% n/a “EBH” (6) (10) EUR n/a CG 2.00% 3.00% 0.90% n/a
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
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Subfund (Reference Currency)
Share Class Currency Minimum holding Share Type(2)
Maximum Adjustment of the Net Asset
Value
Maximum sales charge
Maximum management
fee (per annum) (3)
Perfor‐mance fee
“EBH” (6) (10) USD n/a CG 2.00% 3.00% 0.90% n/a “EBH” (6) (10) (6) n/a CG 2.00% 3.00% 0.90% n/a
“I” JPY 100,000,000 CG 2.00% 3.00% 0.90% n/a “R” (6) (6) n/a CG 2.00% 5.00% 1.92% n/a “S” (6) CHF 1,000,000 CG 2.00% 3.00% 0.90% n/a “S” (6) EUR 1,000,000 CG 2.00% 3.00% 0.90% n/a “S” (6) USD 1,000,000 CG 2.00% 3.00% 0.90% n/a “S” (6) (6) – CG 2.00% 3.00% 0.90% n/a
“UB” (11) JPY n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) CHF n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) EUR n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) USD n/a CG 2.00% 500% 1.50% n/a “UBH” (6) (11) (6) n/a CG 2.00% 5.00% 1.50% n/a
Credit Suisse SICAV One (Lux) Equity Top of Europe 0/100 (EUR)
“B” EUR n/a CG 2.00% 5.00% 1.50% (7) “D” (4) EUR 10 shares CG 2.00% n/a n/a (5) n/a “EB” (10) EUR n/a CG 2.00% 3.00% 0.70% (7)
“EBH” (6) (10) CHF n/a CG 2.00% 3.00% 0.70% (7) “EBH” (6) (10) USD n/a CG 2.00% 3.00% 0.70% (7) “EBH” (6) (10) (6) n/a CG 2.00% 3.00% 0.70% (7)
“I” EUR 1,000,000 CG 2.00% 3.00% 0.70% (7) “R” CHF n/a CG 2.00% 5.00% 1.50% (7) “R” USD n/a CG 2.00% 5.00% 1.50% (7) “R” (6) n/a CG 2.00% 5.00% 1.50% (7) “S” (6) CHF 1,000,000 CG 2.00% 3.00% 0.70% (7) “S” (6) USD 1,000,000 CG 2.00% 3.00% 0.70% (7) “S” (6) (6) – CG 2.00% 3.00% 0.70% (7)
“UB” (11) EUR n/a CG 2.00% 5.00% 1.10% (7) “UBH” (6) (11) CHF n/a CG 2.00% 5.00% 1.10% (7) “UBH” (6) (11) USD n/a CG 2.00% 5.00% 1.10% (7) “UBH” (6) (11) (6) n/a CG 2.00% 5.00% 1.10% (7)
Credit Suisse SICAV One (Lux) European Equity Dividend Plus (EUR)
“A” EUR n/a D 2.00% 5.00% 1.92% n/a “B” EUR n/a CG 2.00% 5.00% 1.92% n/a
“D” (4) EUR 10 shares CG 2.00% n/a n/a (5) n/a “EA” (10) EUR n/a D 2.00% 3.00% 0.70% n/a
“EAH” (6) (10) CHF n/a D 2.00% 3.00% 0.70% n/a “EAH” (6) (10) USD n/a D 2.00% 3.00% 0.70% n/a “EAH” (6) (10) (6) n/a D 2.00% 3.00% 0.70% n/a “EB” (10) EUR n/a CG 2.00% 3.00% 0.70% n/a
“EBH” (6) (10) CHF n/a CG 2.00% 3.00% 0.70% n/a “EBH” (6) (10) USD n/a CG 2.00% 3.00% 0.70% n/a “EBH” (6) (10) (6) n/a CG 2.00% 3.00% 0.70% n/a
“I” EUR 1,000,000 CG 2.00% 3.00% 0.70% n/a “R” (6) CHF n/a CG 2.00% 5.00% 1.92% n/a “R” (6) (6) n/a CG 2.00% 5.00% 1.92% n/a “S” (6) CHF 1,000,000 CG 2.00% 3.00% 0.70% n/a “S” (6) USD 1,000,000 CG 2.00% 3.00% 0.70% n/a “S” (6) (6) – CG 2.00% 3.00% 0.70% n/a
“UA” (11) EUR n/a D 2.00% 5.00% 1.50% n/a “UAH” (6) (11) CHF n/a D 2.00% 5.00% 1.50% n/a “UAH” (6) (11) USD n/a D 2.00% 5.00% 1.50% n/a “UAH” (6) (11) (6) n/a D 2.00% 5.00% 1.50% n/a “UB” (11) EUR n/a CG 2.00% 5.00% 1.50% n/a
“UBH” (6) (11) CHF n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) USD n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) (6) n/a CG 2.00% 5.00% 1.50% n/a
Credit Suisse SICAV One (Lux) Global Convertibles (USD)
“A” USD n/a D 2.00% 5.00% 1.20% n/a “B” USD n/a CG 2.00% 5.00% 1.20% n/a
“D” (4) USD 10 shares CG 2.00% n/a n/a (5) n/a “EA” (10) USD n/a D 2.00% 3.00% 0.70% n/a
“EAH” (6) (10) CHF n/a D 2.00% 3.00% 0.70% n/a “EAH” (6) (10) EUR n/a D 2.00% 3.00% 0.70% n/a “EAH” (6) (10) (6) n/a D 2.00% 3.00% 0.70% n/a “EB” (10) USD n/a CG 2.00% 3.00% 0.70% n/a
“EBH” (6) (10) CHF n/a CG 2.00% 3.00% 0.70% n/a “EBH” (6) (10) EUR n/a CG 2.00% 3.00% 0.70% n/a “EBH” (6) (10) (6) n/a CG 2.00% 3.00% 0.70% n/a
“G” USD 1,000,000 D 2.00% 3.00% 0.70% n/a “I” USD 1,000,000 CG 2.00% 3.00% 0.70% n/a “M” USD 25,000,000 CG 2.00% 1.00% 0.30% n/a “R” (6) CHF n/a CG 2.00% 5.00% 1.20% n/a “R” (6) EUR n/a CG 2.00% 5.00% 1.20% n/a “R” (6) (6) n/a CG 2.00% 5.00% 1.20% n/a “S” (6) CHF 1,000,000 CG 2.00% 3.00% 0.70% n/a “S” (6) EUR 1,000,000 CG 2.00% 3.00% 0.70% n/a “S” (6) GBP 1,000,000 CG 2.00% 3.00% 0.70% n/a
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
7
Subfund (Reference Currency)
Share Class Currency Minimum holding Share Type(2)
Maximum Adjustment of the Net Asset
Value
Maximum sales charge
Maximum management
fee (per annum) (3)
Perfor‐mance fee
“S” (6) (6) – CG 2.00% 3.00% 0.70% n/a “UA” (11) USD n/a D 2.00% 5.00% 0.90% n/a
“UAH” (6) (11) EUR n/a D 2.00% 5.00% 0.90% n/a “UAH” (6) (11) GBP n/a D 2.00% 5.00% 0.90% n/a “UAH” (6) (11) (6) n/a D 2.00% 5.00% 0.90% n/a “UB” (11) USD n/a CG 2.00% 5.00% 0.90% n/a
“UBH” (6) (11) EUR n/a CG 2.00% 5.00% 0.90% n/a “UBH” (6) (11) GBP n/a CG 2.00% 5.00% 0.90% n/a “UBH” (6) (11) (6) n/a CG 2.00% 5.00% 0.90% n/a
“X” (6) CHF n/a D 2.00% 5.00% 1.20% n/a “X” (6) EUR n/a D 2.00% 5.00% 1.20% n/a “X” (6) (6) n/a D 2.00% 5.00% 1.20% n/a “Y” (6) CHF 1,000,000 D 2.00% 3.00% 0.70% n/a “Y” (6) EUR 1,000,000 D 2.00% 3.00% 0.70% n/a “Y” (6) (6) – D 2.00% 3.00% 0.70% n/a
Credit Suisse SICAV One (Lux) Global Equity Dividend Plus (USD)
“A” USD n/a D 2.00% 5.00% 1.92% n/a “B” USD n/a CG 2.00% 5.00% 1.92% n/a
“D” (4) USD 10 shares CG 2.00% n/a n/a (5) n/a “EA” (10) USD n/a D 2.00% 3.00% 0.70% n/a
“EAH” (6) (10) CHF n/a D 2.00% 3.00% 0.70% n/a “EAH” (6) (10) EUR n/a D 2.00% 3.00% 0.70% n/a “EAH” (6) (10) (6) n/a D 2.00% 3.00% 0.70% n/a “EB” (10) USD n/a CG 2.00% 3.00% 0.70% n/a
“EBH” (6) (10) CHF n/a CG 2.00% 3.00% 0.70% n/a “EBH” (6) (10) EUR n/a CG 2.00% 3.00% 0.70% n/a “EBH” (6) (10) (6) n/a CG 2.00% 3.00% 0.70% n/a
“I” USD 1,000,000 CG 2.00% 3.00% 0.70% n/a “R” (6) CHF n/a CG 2.00% 5.00% 1.92% n/a “R” (6) (6) n/a CG 2.00% 5.00% 1.92% n/a “S” (6) CHF 1,000,000 CG 2.00% 3.00% 0.70% n/a “S” (6) EUR 1,000,000 CG 2.00% 3.00% 0.70% n/a “S” (6) (6) – CG 2.00% 3.00% 0.70% n/a
“UA” (11) USD n/a D 2.00% 5.00% 1.50% n/a “UAH” (6) (11) CHF n/a D 2.00% 5.00% 1.50% n/a “UAH” (6) (11) EUR n/a D 2.00% 5.00% 1.50% n/a “UAH” (6) (11) (6) n/a D 2.00% 5.00% 1.50% n/a “UB” (11) USD n/a CG 2.00% 5.00% 1.50% n/a
“UBH” (6) (11) CHF n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) EUR n/a CG 2.00% 5.00% 1.50% n/a “UBH” (6) (11) (6) n/a CG 2.00% 5.00% 1.50% n/a
Credit Suisse SICAV One (Lux) IndexSelection Balanced (Sfr) (CHF)
“B” CHF n/a CG 2.00% 5.00% 1.30% n/a “D” (4) CHF 10 shares CG 2.00% n/a n/a (5) n/a “EB” (10) CHF n/a CG 2.00% 3.00% 0.65% n/a
“EBH” (6) (10) EUR n/a CG 2.00% 3.00% 0.65% n/a “EBH” (6) (10) USD n/a CG 2.00% 3.00% 0.65% n/a “EBH” (6) (10) (6) n/a CG 2.00% 3.00% 0.65% n/a
“I” CHF 3,000,000 CG 2.00% 3.00% 0.65% n/a “R” (6) (6) n/a CG 2.00% 5.00% 1.30% n/a “S” (6) EUR 3,000,000 CG 2.00% 3.00% 0.65% n/a “S” (6) USD 3,000,000 CG 2.00% 3.00% 0.65% n/a “S” (6) (6) – CG 2.00% 3.00% 0.65% n/a
“UB” (11) CHF n/a CG 2.00% 5.00% 1.00% n/a “UBH” (6) (11) EUR n/a CG 2.00% 5.00% 1.00% n/a “UBH” (6) (11) USD n/a CG 2.00% 5.00% 1.00% n/a “UBH” (6) (11) (6) n/a CG 2.00% 5.00% 1.00% n/a
Credit Suisse SICAV One (Lux) IndexSelection Capital Gains Oriented (Sfr) (CHF)
“B” CHF n/a CG 2.00% 5.00% 1.40% n/a “D” (4) CHF 10 shares CG 2.00% n/a n/a (5) n/a “EB” (10) CHF n/a CG 2.00% 3.00% 0.70% n/a
“EBH” (6) (10) EUR n/a CG 2.00% 3.00% 0.70% n/a “EBH” (6) (10) USD n/a CG 2.00% 3.00% 0.70% n/a “EBH” (6) (10) (6) n/a CG 2.00% 3.00% 0.70% n/a
“I” CHF 3,000,000 CG 2.00% 3.00% 0.70% n/a “R” (6) (6) n/a CG 2.00% 5.00% 1.40% n/a “S” (6) EUR 3,000,000 CG 2.00% 3.00% 0.70% n/a “S” (6) USD 3,000,000 CG 2.00% 3.00% 0.70% n/a “S” (6) (6) – CG 2.00% 3.00% 0.70% n/a
“UB” (11) CHF n/a CG 2.00% 5.00% 1.00% n/a “UBH” (6) (11) EUR n/a CG 2.00% 5.00% 1.00% n/a “UBH” (6) (11) USD n/a CG 2.00% 5.00% 1.00% n/a “UBH” (6) (11) (6) n/a CG 2.00% 5.00% 1.00% n/a
Credit Suisse SICAV One (Lux) IndexSelection Income Oriented (Sfr) (CHF)
“B” CHF n/a CG 2.00% 5.00% 1.20% n/a “D” (4) CHF 10 shares CG 2.00% n/a n/a (5) n/a “EB” (10) CHF n/a CG 2.00% 3.00% 0.60% n/a
“EBH” (6) (10) EUR n/a CG 2.00% 3.00% 0.60% n/a “EBH” (6) (10) USD n/a CG 2.00% 3.00% 0.60% n/a
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
8
Subfund (Reference Currency)
Share Class Currency Minimum holding Share Type(2)
Maximum Adjustment of the Net Asset
Value
Maximum sales charge
Maximum management
fee (per annum) (3)
Perfor‐mance fee
“EBH” (6) (10) (6) n/a CG 2.00% 3.00% 0.60% n/a “I” CHF 3,000,000 CG 2.00% 3.00% 0.60% n/a
“R” (6) (6) n/a CG 2.00% 5.00% 1.20% n/a “S” (6) EUR 3,000,000 CG 2.00% 3.00% 0.60% n/a “S” (6) USD 3,000,000 CG 2.00% 3.00% 0.60% n/a “S” (6) (6) – CG 2.00% 3.00% 0.60% n/a
“UB” (11) CHF n/a CG 2.00% 5.00% 0.90% n/a “UBH” (6) (11) EUR n/a CG 2.00% 5.00% 0.90% n/a “UBH” (6) (11) USD n/a CG 2.00% 5.00% 0.90% n/a “UBH” (6) (11) (6) n/a CG 2.00% 5.00% 0.90% n/a
Credit Suisse SICAV One (Lux) Liquid Alternative Beta (USD)
“B” USD n/a CG n/a 5.00% 1.40% n/a “D” (4) USD 10 shares CG n/a n/a n/a (5) n/a “EB” (10) USD n/a CG n/a 3.00% 0.95% n/a
“EBH” (6) (10) CHF n/a CG n/a 3.00% 0.95% n/a “EBH” (6) (10) EUR n/a CG n/a 3.00% 0.95% n/a “EBH” (6) (10) (6) n/a CG n/a 3.00% 0.95% n/a
“I” USD 1,000,000 CG n/a 3.00% 1.00% n/a “M” (10) USD 25,000,000 CG n/a 1.00% 0.95% n/a “R” (6) (6) n/a CG n/a 5.00% 1.40% n/a “S” (6) CHF 1,000,000 CG n/a 3.00% 1.00% n/a “S” (6) EUR 1,000,000 CG n/a 3.00% 1.00% n/a “S” (6) (6) – CG n/a 3.00% 1.00% n/a
“UB” (11) USD n/a CG n/a 5.00% 1.20% n/a “UBH” (6) (11) CHF n/a CG n/a 5.00% 1.20% n/a “UBH” (6) (11) EUR n/a CG n/a 5.00% 1.20% n/a “UBH” (6) (11) (6) n/a CG n/a 5.00% 1.20% n/a
Credit Suisse SICAV One (Lux) Liquid Event Driven (USD)
“B” USD n/a CG n/a 5.00% 1.40% n/a “D” (4) USD 10 shares CG n/a n/a n/a (5) n/a “F” (8) USD n/a CG n/a n/a 0.95% n/a
“EB” (10) USD n/a CG n/a 3.00% 0.95% n/a “EBH” (6) (10) CHF n/a CG n/a 3.00% 0.95% n/a “EBH” (6) (10) EUR n/a CG n/a 3.00% 0.95% n/a “EBH” (6) (10) (6) n/a CG n/a 3.00% 0.95% n/a
“I” USD 1,000,000 CG n/a 3.00% 1.00% n/a “M” (10) USD 25,000,000 CG n/a 1.00% 0.95% n/a “R” (6) (6) n/a CG n/a 5.00% 1.40% n/a “S” (6) CHF 1,000,000 CG n/a 3.00% 1.00% n/a “S” (6) EUR 1,000,000 CG n/a 3.00% 1.00% n/a “S” (6) (6) – CG n/a 3.00% 1.00% n/a “T” (8) (6) CHF n/a CG n/a n/a 0.95% n/a “T” (8) (6) EUR n/a CG n/a n/a 0.95% n/a “T” (8) (6) (6) n/a CG n/a n/a 0.95% n/a “UB” (11) USD n/a CG n/a 5.00% 1.20% n/a
“UBH” (6) (11) CHF n/a CG n/a 5.00% 1.20% n/a “UBH” (6) (11) EUR n/a CG n/a 5.00% 1.20% n/a “UBH” (6) (11) (6) n/a CG n/a 5.00% 1.20% n/a
“W” (10)(6) EUR 25,000,000 CG n/a 1.00% 0.95% n/a “W” (10)(6) CHF 25,000,000 CG n/a 1.00% 0.95% n/a “W” (10)(6) (6) – CG n/a 1.00% 0.95% n/a
Credit Suisse SICAV One (Lux) Liquid Global Strategies (USD)
“B” USD n/a CG n/a 5.00% 1.40% n/a “D” (4) USD 10 shares CG n/a n/a n/a (5) n/a “F” (8) USD n/a CG n/a n/a 0.95% n/a
“EB” (10) USD n/a CG n/a 3.00% 0.95% n/a “EBH” (6) (10) CHF n/a CG n/a 3.00% 0.95% n/a “EBH” (6) (10) EUR n/a CG n/a 3.00% 0.95% n/a “EBH” (6) (10) (6) n/a CG n/a 3.00% 0.95% n/a
“I” USD 1,000,000 CG n/a 3.00% 1.00% n/a “M” (10) USD 25,000,000 CG n/a 1.00% 0.95% n/a “R” (6) (6) n/a CG n/a 5.00% 1.40% n/a “S” (6) CHF 1,000,000 CG n/a 3.00% 1.00% n/a “S” (6) EUR 1,000,000 CG n/a 3.00% 1.00% n/a “S” (6) (6) – CG n/a 3.00% 1.00% n/a “T” (8) (6) CHF n/a CG n/a n/a 0.95% n/a “T” (8) (6) EUR n/a CG n/a n/a 0.95% n/a “T” (8) (6) (6) n/a CG n/a n/a 0.95% n/a “UB” (11) USD n/a CG n/a 5.00% 1.20% n/a
“UBH” (6) (11) CHF n/a CG n/a 5.00% 1.20% n/a “UBH” (6) (11) EUR n/a CG n/a 5.00% 1.20% n/a “UBH” (6) (11) (6) n/a CG n/a 5.00% 1.20% n/a
“W” (10)(6) EUR 25,000,000 CG n/a 1.00% 0.95% n/a “W” (10)(6) CHF 25,000,000 CG n/a 1.00% 0.95% n/a “W” (10)(6) (6) – CG n/a 1.00% 0.95% n/a
Credit Suisse SICAV One (Lux) Liquid Long/Short (USD)
“B” USD n/a CG n/a 5.00% 1.40% n/a “D” (4) USD 10 shares CG n/a n/a n/a (5) n/a “F” (8) USD n/a CG n/a n/a 0.95% n/a
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
9
Subfund (Reference Currency)
Share Class Currency Minimum holding Share Type(2)
Maximum Adjustment of the Net Asset
Value
Maximum sales charge
Maximum management
fee (per annum) (3)
Perfor‐mance fee
“EB” (10) USD n/a CG n/a 3.00% 0.95% n/a “EBH” (6) (10) CHF n/a CG n/a 3.00% 0.95% n/a “EBH” (6) (10) EUR n/a CG n/a 3.00% 0.95% n/a “EBH” (6) (10) (6) n/a CG n/a 3.00% 0.95% n/a
“I” USD 1,000,000 CG n/a 3.00% 1.00% n/a “M” (10) USD 25,000,000 CG n/a 1.00% 0.95% n/a “R” (6) (6) n/a CG n/a 5.00% 1.40% n/a “S” (6) CHF 1,000,000 CG n/a 3.00% 1.00% n/a “S” (6) EUR 1,000,000 CG n/a 3.00% 1.00% n/a “S” (6) (6) – CG n/a 3.00% 1.00% n/a “T” (8) (6) CHF n/a CG n/a n/a 0.95% n/a “T” (8) (6) EUR n/a CG n/a n/a 0.95% n/a “T” (8) (6) (6) n/a CG n/a n/a 0.95% n/a “UB” (11) USD n/a CG n/a 5.00% 1.20% n/a
“UBH” (6) (11) CHF n/a CG n/a 5.00% 1.20% n/a “UBH” (6) (11) EUR n/a CG n/a 5.00% 1.20% n/a “UBH” (6) (11) (6) n/a CG n/a 5.00% 1.20% n/a
“W” (10)(6) EUR 25,000,000 CG n/a 1.00% 0.95% n/a “W” (10)(6) CHF 25,000,000 CG n/a 1.00% 0.95% n/a “W” (10)(6) (6) – CG n/a 1.00% 0.95% n/a
Credit Suisse SICAV One (Lux) Small and Mid Cap Alpha Long/Short (EUR)
“B” EUR n/a CG 2.00% 5.00% 2.00% (7) “D” (4) EUR 10 shares CG 2.00% n/a n/a (5) n/a “EB” (10) EUR n/a CG 2.00% 3.00% 1.20% (7)
“EBH” (6) (10) CHF n/a CG 2.00% 3.00% 1.20% (7)
“EBH” (6) (10) USD n/a CG 2.00% 3.00% 1.20% (7)
“EBH” (6) (10) (6) n/a CG 2.00% 3.00% 1.20% (7)
“I” EUR 1,000,000 CG 2.00% 3.00% 1.80% (7) “R” (6) CHF n/a CG 2.00% 5.00% 2.00% (7) “R” (6) USD n/a CG 2.00% 5.00% 2.00% (7)
“R” (6) (6) n/a CG 2.00% 5.00% 2.00% (7) “S” (6) CHF 1,000,000 CG 2.00% 3.00% 1.80% (7) “S” (6) USD 1,000,000 CG 2.00% 3.00% 1.80% (7) “S” (6) (6) – CG 2.00% 3.00% 1.80% (7)
“UB” (11) EUR n/a CG 2.00% 5.00% 1.50% (7)
“UBH” (6) (11) CHF n/a CG 2.00% 5.00% 1.50% (7)
“UBH” (6) (11) USD n/a CG 2.00% 5.00% 1.50% (7)
“UBH” (6) (11) (6) n/a CG 2.00% 5.00% 1.50% (7)
(1) This Summary of Share Classes should not be relied upon as a substitute for reading the Prospectus. (2) CG = capital growth / D = distribution (3) The management fee actually payable will be disclosed in the respective annual or semi‐annual report. (4) Class D Shares may only be acquired by those investors who have concluded a discretionary asset management agreement with a subsidiary of
Credit Suisse Group AG. Moreover, subject to the prior consent of the Company, Class D Shares may also be acquired by institutional investors who have concluded an advisory agreement or any similar agreement with a subsidiary of Credit Suisse Group AG.
(5) Class D Shares are not subject to a management fee but only to a service fee, payable to the Central Administration, of at least 0.03% p.a. but not more than 0.15% p.a.
(6) The Company may decide on the issue of Class EAH, EBH, R, S, T, UAH, UBH, W, X and Y Shares in any freely convertible currencies as well as on their Initial Offering price at any time. Shareholders have to check with the agents mentioned in Chapter 14, “Information for Shareholders”, if Shares of Class EAH, EBH, R, S, T, UAH, UBH, W, X and Y have been issued in additional currencies in the meantime before submitting a subscription application. With Share Classes EAH, EBH, R, S, T, UAH, UBH, W, X and Y the risk of an overall depreciation of the Subfund’s Reference Currency against the Alternate Currency of the Share Classes is reduced significantly by hedging the Net Asset Value of the respective Share Classes EAH, EBH, R, S, T, UAH, UBH, W, X and Y – calculated in the Subfund’s Reference Currency – against the respective Alternate Currency by means of forward foreign exchange transactions. The Net Asset Value of the Shares of these Alternate Currency Classes does not develop in the same way as that of the Share Classes issued in the Reference Currency.
(7) The performance fee is set out in Chapter 22, “Subfunds”. (8) Class F and T Shares may only be acquired by investors who have concluded a discretionary asset management agreement with a subsidiary of
Credit Suisse Group AG. (9) For this class of Share, an additional fee will apply owing to the use of the overlay strategy (volatility fee): See Chapter 9, “Costs and Taxes”, (iv)
“Volatility Fee”. (10) Class EA,EAH, EB, EBH, M and W Shares may only be acquired by institutional investors. (11) Class UA, UAH, UB and UBH Shares are only available at the Management Company’s discretion to certain distributors who, for example, have
separate fee arrangements with their clients.
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
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3. The Company The Company is an undertaking for collective investment in transferable securities in the legal form of an investment company with variable capital (société d’investissement à capital variable, SICAV) subject to Part I of the Law of December 17, 2010 on undertakings for collective investment (“Law of December 17, 2010”) transposing Directive 2009/65/EC of the European Parliament and of the Council of July 13, 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities. The Company was established on February 5, 2007. The Company has appointed Credit Suisse Fund Management S.A. as the management company (“Management Company”). In this capacity, the Management Company acts as investment manager, administrator and distributor of the Company’s Shares. The Management Company has delegated the above‐mentioned tasks as follows: Tasks relating to investment advice are performed by the investment managers (“Investment Managers”) named in Chapter 22, “Subfunds”, and administrative tasks are performed by Credit Suisse Fund Services (Luxembourg) S.A. The distributors named in Chapter 20, “Main Parties”, are responsible for the distribution of the Company’s Shares. The Company is registered with the Luxembourg Trade and Companies Register (registre de commerce et des sociétés) under no. B 124 019. Its articles of incorporation (“Articles of Incorporation”) were first published in the Mémorial, Recueil des Sociétés et Associations on February 14, 2007. The last amendments of the Articles of Incorporation took place on December 21, 2011 and will be published in the “Mémorial”. The legally binding version is deposited with the Trade and Companies Register. All amendments of the Articles of Incorporation will be announced in accordance with Chapter 14, “Information for Shareholders”, and becomes legally binding for all shareholders (“Shareholders”) subsequent to their approval by the general meeting of Shareholders. The share capital of the Company corresponds to the total net asset value of the Company and shall at any time exceed EUR 1,250,000. The Company has an umbrella structure and therefore consists of at least one subfund (a “Subfund”). Each Subfund represents a portfolio containing different assets and liabilities and is considered to be a separate entity in relation to the Shareholders and third parties. The rights of Shareholders and creditors concerning a Subfund or which have arisen in relation to the establishment, operation or liquidation of a Subfund are limited to the assets of that Subfund. No Subfund will be liable with its assets for the liabilities of another Subfund. The board of directors of the Company (“Board of Directors”) may at any time establish new Subfunds with Shares having similar characteristics to the Shares in the existing Subfunds. The Board of Directors may at any time create and issue new classes (“Classes”) or types of Shares within any Subfund. If the Board of Directors establishes a new Subfund and/or creates a new Class or type of Share, the corresponding details shall be set out in this Prospectus. A new Class or type of Share may have different characteristics than the currently existing Classes. The terms of any offering of new Shares shall be set out in Chapter 2, “Summary of Share Classes” and Chapter 22, “Subfunds”. The characteristics of each possible Share Class are further described in this Prospectus, in particular in Chapter 5, “Investment in Credit Suisse SICAV One (Lux)”, and in Chapter 2, “Summary of Share Classes”. The individual Subfunds shall be denominated as indicated in Chapter 2, “Summary of Share Classes” and Chapter 22, “Subfunds”. Information about the performance of the individual Share Classes of the Subfunds is contained in the Key Investor Information Document. 4. Investment Policy The primary objective of the Company is to provide investors with an opportunity to invest in professionally managed portfolios. The assets of the Subfunds are invested, in accordance with the principle of risk diversification, in transferable securities and other assets as specified in Article 41 of the Law of December 17, 2010. The investment objective and policy of the individual Subfunds are described in Chapter 22, “Subfunds”. The assets of the individual Subfunds will be invested in accordance with the investment restrictions as stipulated by the Law of December 17, 2010 and set out in this Prospectus in Chapter 6, “Investment Restrictions”.
The investment objective for each Subfund is to maximize the appreciation of the assets invested. In order to achieve this, the Company shall assume a fair and reasonable degree of risk. However, in consideration of market fluctuations and other risks (see Chapter 7, “Risk Factors”) there can be no guarantee that the investment objective of the relevant Subfunds will be achieved. The value of investments may go down as well as up and investors may not recover the value of their initial investment. Reference Currency The reference currency is the currency in which the performance and the net asset value of the Subfunds are calculated (“Reference Currency”). The Reference Currencies of the individual Subfunds are specified in Chapter 2, “Summary of Share Classes”. Liquid Assets The Subfunds may hold ancillary liquid assets in the form of sight and time deposits with first‐class financial institutions and money market instruments which do not qualify as transferable securities and have a term to maturity not exceeding 12 months, in any convertible currency. Moreover, each Subfund may, on an ancillary basis, hold units/shares in undertakings for collective investment in transferable securities which are subject to Directive 2009/65/EC and which in turn invest in short‐term time deposits and money market instruments and whose returns are comparable with those for direct investments in time deposits and money market instruments. Securities Lending Subject to the investment restrictions set out below, a Subfund may from time to time enter into securities lending transactions. In the context of securities lending revenues, the income generated by the transactions is credited to the participating Subfunds except for the direct and indirect costs as well as any liability linked to the transactions which are credited to the principal. The legal entity acting as securities lending principal on behalf of the Subfunds is Credit Suisse AG, Zurich. The Management Company does not receive any of the securities lending revenue. The Subfunds will ensure that the volume of the securities lending transactions is kept at an appropriate level or that it is entitled to request the return of the securities lent in a manner that enables it, at all times, to meet its redemption obligations.The counterparties to efficient portfolio management techniques should be subject to prudential supervision rules considered by the CSSF as equivalent to those prescribed by Community law. The risk exposure to the counterparty arising from securities lending transactions and OTC financial derivative instruments should be combined when calculating the counterparty risk limits foreseen under Chapter 6.4) a) “Investment Restrictions”. The counterparty risk may be disregarded provided that the value of the collateral valued at market price, taking into account appropriate haircuts, exceeds the value of the amount exposed to risk. The Subfunds will not receive cash collateral. The Subfunds will ensure that its counterparty delivers collateral in the form of securities compliant with the applicable Luxembourg regulations. Appropriate haircuts on the collateral value are applied in accordance with the Risk Management Process of the Management Company. Subfunds which existed already before the application of ESMA Guidelines 2012/832 (i.e. 18 February 2013) should align their portfolio of collateral with the Guidelines within 12 months of the application date of the Guidelines (i.e. 18 February 2014). Collective Management of Assets For the purpose of efficient management of the Company and where the investment policies so permit, the Company’s Board of Directors may opt to manage all or part of the assets of certain Subfunds in common. Assets so managed shall be referred to hereinafter as a “pool”. Such pools are created solely for internal management purposes and do not constitute a separate legal entity. Therefore, they cannot be directly accessed by investors. Each of the jointly managed Subfunds shall remain entitled to its own specific assets. The assets jointly managed in the pools may be divided and transferred to all the participating Subfunds at any time.
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
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If the assets of several Subfunds are pooled in order to be managed jointly, a written record is kept of that portion of the assets in the pool which can be allocated to each of the Subfunds concerned, with reference to the Subfund’s original share in this pool. The rights of each participating Subfund to the jointly managed assets shall relate to each individual position in the respective pool. Additional investments made for the jointly managed Subfunds shall be allocated to these Subfunds in an amount proportionate to their participation while assets, which have been sold, shall be deducted from each participating Subfund’s assets accordingly. Cross‐investments between Subfunds of the Company The Subfunds of the Company may, subject to the conditions provided for in the Law of December 17, 2010, in particular Article 41, subscribe, acquire and/or hold securities to be issued or issued by one or more Subfunds of the Company under the following conditions: – the target Subfund does not, in turn, invest in the Subfund
invested in this target Subfund; and – no more than 10% of the assets of the target Subfund whose
acquisition is contemplated may be invested in aggregate in shares of other target Subfunds of the Company; and
– voting rights, if any, attaching to the relevant securities are suspended for as long as they are held by the Subfund concerned and without prejudice to the appropriate processing in the accounts and the periodic reports; and
– in any event, for as long as these securities are held by the Company, their value will not be taken into consideration for the calculation of the net assets of the Company for the purposes of verifying the minimum threshold of the net assets imposed by the Law of December 17, 2010; and
– there is no duplication of management/subscription or repurchase fees between those at the level of the Subfund of the Company having invested in the target Subfund, and this target Subfund.
5. Investment in Credit Suisse SICAV One (Lux) i. General Information on the Shares Each Subfund may issue Shares of Classes A, B, D, EA, EAH, EB, EBH, F, G, I, M, P, R, S, T, UA, UAH, UB, UBH, W, X or Y. The Share Classes which are issued within each Subfund, together with the related fees and sales charges as well as the Reference Currency are set out in Chapter 2, “Summary of Share Classes”. A redemption fee will not be charged. In addition, certain other fees, charges and expenses shall be paid out of the assets of the Subfunds. For further information, see Chapter 9, “Expenses and Taxes”. All Share Classes are only available in uncertificated form and will exist exclusively as book entries. The Shares which make up each such Share Class will be either capital‐growth Shares or distribution Shares. Capital‐growth Shares Class B, D, EB, EBH, F, I, M, P, R, S, T, UB, UBH and W Shares are capital‐growth Shares. Details of the characteristics of capital‐growth Shares are included in Chapter 11, “Appropriation of Net Income and Capital Gains”. Distribution Shares Class A, EA, EAH, G, UA, UAH, X and Y, Shares are a distributing Shares. Details of the characteristics of distribution Shares are included in Chapter 11, “Appropriation of Net Income and Capital Gains”. Share Classes dedicated to a specific type of Investors Class D Shares may only be acquired by investors who have concluded a discretionary asset management agreement with a subsidiary of Credit Suisse Group AG. Furthermore, subject to the prior consent of the Company, Class D Shares may also be acquired by institutional investors (according to Article 174 (2) c) of the Law of December 17, 2010) which have concluded an advisory agreement or any similar agreement with a subsidiary of Credit Suisse Group AG. Where such a discretionary asset management agreement, advisory agreement or any similar agreement has been terminated, Class D Shares held by the investor at that time shall be either compulsorily redeemed or, according to the request of investor, converted into another Share Class. Moreover, Class D Shares are not transferable
without the Company’s approval. Class D Shares shall not be subject to a management fee or sales charge, however a service fee payable to the central administration (“Central Administration”) will be charged. A minimum initial investment and holding is required for this Share Class, as specified in Chapter 2, “Summary of Share Classes”. Class F and T Shares may only be acquired by investors who have concluded a discretionary asset management agreement with a subsidiary of Credit Suisse Group AG. Where such a discretionary asset management agreement has been terminated, Class F and T Shares held by the investor at that time shall be either compulsorily redeemed or, according to the request of the investor, converted into another Share Class. Moreover, Class F and T Shares are not transferable without the approval of the Company. Class F and T Shares shall not be subject to a sales charge and shall benefit from a reduced management fee as specified in Chapter 2 “Summary of Share Classes”. Class UA, UAH, UB and UBH Shares may only be acquired by certain distributors who, for example, have separate fee arrangements with their clients at the discretion of the Management Company. Class UA, UAH, UB and UBH Shares are subject to a sales charge and shall benefit from a reduced management fee as specified in Chapter 2, “Summary of Share Classes”. Class EA, EAH, EB and EBH Shares may only be acquired by institutional investors according to Article 174 (2) c) of the Law of December 17, 2010. Class EA, EAH, EB and EBH Shares benefit from the reduced management fee and sales charge as specified in Chapter 2, “Summary of Share Classes”. Class M and W Shares may only be acquired by institutional investors according to Article 174 (2) c) of the Law of December 17, 2010. Class M and W Shares are subject to initial investment and holding requirements and benefit from the reduced management fee and sales charge as specified in Chapter 2, “Summary of Share Classes”. Minimum Holding Class D, G, I, M, P, S, W and Y Shares are subject to an initial minimum investment and holding amount and benefit from reduced management fees and sales charges (if applicable) as specified in Chapter 2, “Summary of Share Classes”. Hedged Share Classes Depending on the Subfund, Class EAH, EBH, R, S, T, UAH, UBH, W, X and Y Shares are issued in one or more alternate currencies, as set out in Chapter 2, “Summary of Share Classes”. In order to reduce the risk of an overall depreciation of the Subfund’s Reference Currency against the alternate currency of the Share Classes EAH, EBH, R, S, T, UAH, UBH, W, X and Y, the net asset value of the respective Share Classes EAH, EBH, R, S, T, UAH and UBH, W, X and Y, as calculated in the Subfund’s Reference Currency, will be hedged against the respective alternate currency of Share Classes EAH, EBH, R, S, T, UAH, UBH, W, X and Y through the use of forward foreign exchange transactions. However, no assurance can be given that the hedging objective will be achieved. Consequently, the currency risk of the investment currencies (except for the Reference Currency) versus the alternate currency will not be hedged or will only be partially hedged. Class EAH, EBH, R, S, T, UAH, UBH, W, X and Y Shares are subject to the management fee and sales charge as set out in Chapter 2 “Summary of Share Classes”. Subscription of S, W and Y Shares is subject to the minimum initial investment and holding requirements as set out in Chapter 2 “Summary of Share Classes”. The net asset value of the Shares of this alternate currency class (“Alternate Currency Class”) does not develop in the same way as that of the Share Classes issued in the Reference Currency. Issue Price Unless otherwise determined by the Company, the initial issue price of Share Classes A, B, R, X, UA, UB, UAH and UBH amounts to EUR 10, CHF 10, USD 10, SGD 10, RON 10, PLN 10, GBP 10, CZK 100 and/or HUF 1000, and of Share Classes D, EA, EAH, EB, EBH, F, G, I, M, P, S, T, W and Y to EUR 1000, CHF 1000, USD 1000, SGD 1000 and/or GBP 1000, depending on the currency denomination of the Share Class in the respective Subfund and its characteristics. After the initial offering, Shares may be subscribed at the applicable net asset value (“Net Asset Value”).
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
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The Company may, at any time, decide on the issue of Share Classes in any additional freely convertible currencies at an initial issue price to be determined by the Company. Except in case of Alternate Currency Share Classes, Share Classes shall be denominated in the Reference Currency of the Subfund to which they relate (as specified in Chapter 2, “Summary of Share Classes”). Investors may, at the discretion of the Central Administration, pay the subscription monies for Shares in a convertible currency other than the currency in which the relevant Share Class is denominated. As soon as the receipt is determined by the custodian bank (“Custodian Bank”), such subscription monies shall be automatically converted by the Custodian Bank into the currency in which the relevant Shares are denominated. Further details are set out in Chapter 5 ii., “Subscription of Shares”. The Company may at any time issue, within a Subfund, one or more Share Classes denominated in a currency other than the Subfund’s Reference Currency. The issue of each further Alternate Currency Class is specified in Chapter 2, “Summary of Share Classes”. The Company may enter into forward currency contracts for, and at the expense of, this Alternate Currency Class in order to minimize the effect of price fluctuations in this alternate currency. However, no assurance can be given that the hedging objective will be achieved. The Net Asset Value of the Shares of these Alternate Currency Classes does not develop in the same way as that of the Share Classes issued in the Reference Currency. In the case of Subfunds with Alternate Currency Classes, the currency hedging transactions for one Share Class may, in exceptional cases, adversely affect the Net Asset Value of the other Share Classes. Shares may be held through collective depositories. In such cases, Shareholders shall receive a confirmation in relation to their Shares from the depository of their choice (for example, their bank or broker), or Shares may be held by Shareholders directly in a registered account kept for the Company and its Shareholders by the Company’s Central Administration. These Shareholders will be registered by the Central Administration. Shares held by a depository may be transferred to an account of the Shareholder with the Central Administration or to an account with other depositories approved by the Company or, except for Share Classes D, EA, EAH, EB, EBH, F, M, P, UA, UAH, UB, UBH, T and W with an institution participating in the securities and fund clearing systems. Conversely, Shares held in a Shareholder’s account kept by the Central Administration may at any time be transferred to an account with a depository. The Company may divide or merge the Shares in the interest of the Shareholders. ii. Subscription of Shares Unless otherwise specified in Chapter 22, “Subfunds”, Shares may be subscribed on any day on which banks are normally open for business in Luxembourg (“Banking Day”) at the Net Asset Value per Share of the relevant Share Class of the Subfund, which is calculated on the next Valuation Day (as defined in Chapter 8, “Net Asset Value”) following such Banking Day according to the method described in Chapter 8, “Net Asset Value”, plus the applicable initial sales charges and any taxes. The applicable maximum sales charge levied in connection with the Shares of the Company is indicated in Chapter 2, “Summary of Share Classes”. Unless otherwise specified in Chapter 22, “Subfunds”, subscription applications must be submitted in written form to the Central Administration or a distributor authorized by the Company to accept applications for the subscription or redemption of Shares (“Distributor”) before 3 p.m. (Central European Time). Unless otherwise specified in Chapter 22, “Subfunds”, subscription applications shall be settled on the Valuation Day following the Banking Day on which receipt of the subscription application is determined by the Central Administration or the relevant Distributor before 3 p.m. (Central European Time). Subscription applications received after 3 p.m. on a Banking Day shall be deemed to have been received prior to 3 p.m. on the following Banking Day. Unless otherwise specified in Chapter 22, “Subfunds”, payment must be received within two Banking Days after the Valuation Day on which the issue price of such Shares was determined. Charges to be paid due to the subscription of Shares shall accrue to the banks and other financial institutions engaged in the distribution of the
Shares. Any taxes incurred on the issue of Shares shall also be charged to the investor. Subscription amounts shall be paid in the currency in which the relevant Shares are denominated or, if requested by the investor and at the sole discretion of the Central Administration, in another convertible currency. Payment shall be effected by bank transfer to the Company’s bank accounts. Further details are set out in the subscription application form. The Company may in the interest of the Shareholders accept transferable securities and other assets permitted by Part I of the Law of December 17, 2010 as payment for subscription (“contribution in kind”), provided the offered transferable securities and assets correspond to the investment policy and restrictions of the relevant Subfund. Each payment of Shares in return for a contribution in kind is part of a valuation report issued by the auditor of the Company. The Board of Directors may, at its sole discretion, reject all or several offered transferable securities and assets without giving reasons. All costs caused by such contribution in kind (including the costs for the valuation report, broker fees, expenses, commissions, etc.) shall be borne by the investor. The Shares shall be issued upon receipt of the issue price with the correct value date by the Custodian Bank. Notwithstanding the above, the Company may, at its own discretion, decide that the subscription application will only be accepted once these monies are received by the Custodian Bank. If the payment is made in a currency other than the one in which the relevant Shares are denominated, the proceeds of conversion from the currency of payment to the currency of denomination less fees and exchange commission shall be allocated to the purchase of Shares. The minimum value or number of Shares which must be held by a Shareholder in a particular Share Class is set out in Chapter 2, “Summary of Share Classes”, if applicable. Such minimum initial investment and holding requirement may be waived in any particular case at the sole discretion of the Company. Subscriptions and redemptions of fractions of Shares shall be permitted up to three decimal places. Fractional Shares shall not be entitled to voting rights. A holding of fractional Shares shall entitle the Shareholder to proportional rights in relation to such Shares. It might occur clearing institutions will be unable to process holdings of fractional Shares. Investors should verify whether this is the case. The Company, Management Company and the Central Administration are entitled to refuse any subscription application in whole or in part for any reason, and may in particular prohibit or limit the sale of Shares to individuals or corporate bodies in certain countries or regions if such sales might be detrimental to the Company or if a subscription in the country concerned is in contravention of applicable laws. Moreover, where new investments would adversely affect the achievement of the investment objective, the Management Company may decide to suspend the issue of Shares on a permanent or temporary basis. iii. Redemption of Shares Unless otherwise specified in Chapter 22,, “Subfunds”, the Company shall in principle redeem Shares on any Banking Day at the Net Asset Value per Share of the relevant Share Class of the Subfund (based on the calculation method as described in Chapter 8, “Net Asset Value”), calculated on the Valuation Day following such Banking Day, less any redemption fee where applicable. Redemption applications must be submitted to the Central Administration or a Distributor. Redemption applications for Shares held through a depository must be submitted to the depository concerned. Unless otherwise specified in Chapter 22, “Subfunds”, redemption applications must be received by the Central Administration or the Distributor before 3 p.m. (Central European Time) on a Banking Day. Redemption applications received after 3 p.m. on a Banking Day shall be dealt with on the following Banking Day. If the execution of a redemption application were to result in the investor’s holding in a particular Share Class falling below the minimum holding requirement for that Class as set out in Chapter 2, “Summary of Share Classes”, the Company may, without further notice to the Shareholder, treat such redemption application as though it were an application for the redemption of all Shares of the Class held by the Shareholder. Class D Shares, which may only be purchased by investors who have signed a discretionary asset management, advisory agreement or any similar agreement with a subsidiary of Credit Suisse Group AG, shall be
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
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either compulsorily redeemed or, according to the request of investor, converted into another Share Class if the corresponding discretionary asset management, advisory agreement or any similar agreement has been terminated. Class F and T Shares, which may only be purchased by investors who have concluded a discretionary asset management agreement with a subsidiary of Credit Suisse Group AG, shall be either compulsorily redeemed or, according to the request of investor, converted into another Share Class if the corresponding discretionary asset management agreement has been terminated. Unless otherwise specified in Chapter 22, “Subfunds”, Shares shall be redeemed at the relevant Net Asset Value per Share calculated on the Valuation Day following the Banking Day on which receipt of the redemption application is determined by the respective Distributor or the Central Administration before 3 p.m. (Central European Time). Whether and to what extent the redemption price is lower or higher than the issue price paid depends on the development of the Net Asset Value of the relevant Share Class. Payment of the redemption price of the Shares shall be made within two Banking Days following calculation of the redemption price, unless stated otherwise in Chapter 22, “Subfunds”. This does not apply where specific statutory provisions such as foreign exchange or other transfer restrictions or other circumstances beyond the Custodian Bank’s control make it impossible to transfer the redemption price. In the case of large redemption applications, the Company may decide to settle redemption applications once it has sold corresponding assets without undue delay. Where such a measure is necessary, if not otherwise specified in Chapter 22, “Subfunds”, all redemption applications received on the same day shall be settled at the same price. Payment shall be made by means of remittance to a bank account or by check or, if possible, by cash in the currency that is legal tender in the country where payment is to be made, after conversion of the amount in question. If, at the sole discretion of the Custodian Bank, payment is to be made in a currency other than the one in which the relevant Shares are denominated, the amount to be paid shall be the proceeds of conversion from the currency of denomination to the currency of payment less all fees and exchange commission. Upon payment of the redemption price, the corresponding Share shall cease to be valid. The Company is entitled to compulsorily redeem all Shares held by a Shareholder where any of the representations and warranties made in connection with the acquisition of the Shares was not true or has ceased to be true, or the holding by such Shareholder in a particular Share Class has fallen below the minimum investment and holding requirement for that Class as set out in Chapter 2, “Summary of Share Classes”, or such Shareholder fails to comply with any other applicable eligibility condition for that Share Class. The Company is also entitled to compulsorily redeem all Shares held by a Shareholder in any other circumstances in which the Company determines in its absolute discretion that such compulsory redemption would avoid material, legal, regulatory, pecuniary, tax, economic, proprietary, administrative or other disadvantages to the Company, including but not limited to the cases where such Shares are held by Shareholders who are not entitled to acquire or possess these Shares, or who fail to comply with any obligations associated with the holding of these Shares under the applicable regulations. iv. Conversion of Shares Unless otherwise specified in Chapter 22, “Subfunds”, Shareholders in a particular Share Class of a Subfund may at any time convert all or part of their Shares into Shares of the same Class of another Subfund or into Shares of another Class in the same Subfund, provided that the requirement for the Share Class into which such Shares are converted (see Chapter 2, “Summary of Share Classes”) are complied with. The fee charged for such conversions shall not exceed half the initial sales charge of the Class into which the Shares are converted. Unless otherwise specified in Chapter 22, “Subfunds”, conversion applications must be completed and submitted to the Central Administration or the Distributor before 3 p.m. (Central European Time) on a Banking Day. Conversion applications received after 3 p.m. shall be dealt with on the following Banking Day. Conversion shall take place on the basis of the applicable Net Asset Value per Share calculated on the Valuation Day following the Banking Day on which receipt of the
conversion application is determined to be received by the Distributor or the Central Administration before 3 p.m. (Central European Time). Conversions of Shares will only be made on a Valuation Day, if the Net Asset Value in both relevant Share Classes is calculated. Where processing an application for the conversion of Shares would result in the relevant Shareholder’s holding in a particular Share Class falling below the minimum holding requirement for that Class set out in Chapter 2, “Summary of Share Classes”, the Company may, without further notice to the Shareholder, treat such conversion application as though it were an application for the conversion of all Shares held by the Shareholder in that Share Class. Where Shares denominated in one currency are converted into Shares denominated in another currency, the foreign exchange and conversion fees incurred will be taken into consideration and deducted. v. Suspension of the Subscription, Redemption and Conversion of
Shares and the Calculation of the Net Asset Value The Company may suspend the calculation of the Net Asset Value and/or the issue, redemption and conversion of Shares of a Subfund where a substantial proportion of the assets of the Subfund: a) cannot be valued, because a stock exchange or market is closed on
a day other than usual public holiday, or when trading on such stock exchange or market is restricted or suspended; or
b) is not freely disposable because a political, economic, military, monetary or any other event beyond the control of the Company does not permit the disposal of the Subfund’s assets, or such disposal would be detrimental to the interests of Shareholders; or
c) cannot be valued because disruption to the communications network or any other reason makes a valuation impossible; or
d) is not available for transactions because restrictions on foreign exchange or other types of restrictions make asset transfers impracticable or it can be objectively demonstrated that transactions cannot be effected at normal foreign exchange rates; or
e) when the prices of a substantial portion of the constituents of the underlying asset or the price of the underlying asset itself of an OTC transaction and/or when the applicable techniques used to create an exposure to such underlying asset cannot promptly or accurately be ascertained; or
f) where the existence of any state of affairs which, in the opinion of the Board of Directors, constitutes an emergency or renders impracticable, a disposal of a substantial portion of the assets attributable to a Subfund and/or a disposal of a substantial portion of the constituents of the underlying asset of an OTC transaction; or
g) where the master fund has suspended the repurchase, redemption or subscription of its units.
Investors applying for, or who have already applied for, the subscription, redemption or conversion of Shares in the respective Subfund shall be notified of the suspension without delay. Notice of the suspension shall be published as described in Chapter 14, “Information for Shareholders” if, in the opinion of the Board of Directors of the Company, the suspension is likely to last for longer than one week. Suspension of the calculation of the Net Asset Value of one Subfund shall not affect the calculation of the Net Asset Value of the other Subfunds if none of the above conditions apply to such other Subfunds. vi. Measures to combat Money Laundering The Distributors are obliged by the Company to ensure compliance with all current and future statutory or professional regulations applicable in Luxembourg aimed at combating money laundering and terrorist financing. These regulations stipulate that the Distributors are under obligation, prior to submitting any application form to the Central Administration, to verify the identity of the purchaser and beneficial owner as follows: a) Where the subscriber is an individual, a copy of the passport or
identity card of the subscriber (and the beneficial owner/s of the Shares where the subscriber is acting on behalf of another individual), which has been properly verified by a suitably qualified official of the country in which such individual is domiciled;
b) Where the subscriber is a company, a certified copy of the company’s registration documentation (e.g. articles of association or incorporation) and an excerpt from the relevant commercial
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
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register. The company’s representatives and (where the shares issued by a company are not sufficiently broadly distributed among the general public) shareholders must then observe the disclosure requirements given in point a) above.
The Central Administration of the Company is however entitled at its own discretion to request, at any time, further identification documentation related to a subscription application or to refuse to accept subscription applications upon the submission of all documentary evidence. The Distributors shall ensure that their sales offices adhere to the aforementioned verification procedure at all times. The Central Administration and the Company shall at all times be entitled to request evidence of compliance from the Distributor. Furthermore, the Distributors accept that they are subject to, and must properly enforce, the national regulations aimed at combating money laundering and terrorist financing. The Central Administration is responsible for observing the aforementioned verification procedure in the event of purchase applications submitted by Distributors which are not operators in the financial sector or which are operators in the financial sector but are not subject to an identity verification requirement equivalent to that existing under Luxembourg law. Permitted financial sector operators from Member States of the EU and/or FATF (Financial Action Task Force on Money Laundering) are generally deemed to be subject to an identity verification requirement equivalent to that existing under Luxembourg law. vii. Market Timing The Company does not permit practices related to “Market Timing” (i.e. a method through which an investor systematically subscribes and redeems or converts Shares of Classes within a short time period, by taking advantage of time differences and/or imperfections or deficiencies in the method of determination of the Net Asset Value. It therefore reserves the right to reject subscription and conversion applications from an investor who the Company suspects of using such practices and to take, if appropriate, the necessary measures to protect the other investors of the Company. 6. Investment Restrictions For the purpose of this Chapter, each Subfund shall be regarded as a separate UCITS within the meaning of Article 40 of the Law of December 17, 2010. The following provisions shall apply to the investments made by each Subfund: 1) The Subfunds’ investments may comprise only one or more of the
following: a) transferable securities and money market instruments
admitted to or dealt in on a regulated market; for these purposes, a regulated market is any market for financial instruments within the meaning of Directive 2004/39/EC of the European Parliament and of the Council of April 21, 2004 on markets in financial instruments as amended;
b) transferable securities and money market instruments dealt in on another market in a Member State which is regulated, operates regularly and is recognized and open to the public; for the purpose of this Chapter “Member State” means a Member State of the European Union (“EU”) or the States of the European Economic Area (“EEA”) other than the Member States of the EU;
c) transferable securities and money market instruments admitted to official listing on a stock exchange in a non‐Member State of the European Union or dealt in on another market in a non‐Member State of the European Union which is regulated, operates regularly and is recognized and open to the public, and is established in a country in Europe, America, Asia, Africa or Oceania;
d) recently issued transferable securities and money market instruments, provided that the terms of issue include an undertaking that application will be made for admission to official listing on stock exchanges or markets as per paragraphs a), b) or c) above and provided such admission takes place within one year of issue;
e) units or shares of undertakings for collective investment in transferable securities authorized according to Directive 2009/65/EC (“UCITS”) and/or other undertakings for collective investment within the meaning of Article 1, paragraph 2, points a) and b) of Directive 2009/65/EC (“UCI”), whether or not established in a Member State, provided that: – these other UCI are authorized under laws which provide
that they are subject to supervision considered by the supervisory authority responsible for the Company, to be equivalent to that required by EU Community law and that cooperation between the supervisory authorities is sufficiently ensured,
– the level of protection for share‐/unitholders of the other UCIs is equivalent to that provided for share‐/unitholders in a UCITS, and in particular that the rules on asset segregation, borrowing, lending and uncovered sales of transferable securities and money market instruments are equivalent to the requirements of Directive 2009/65/EC,
– the business activities of the other UCIs are reported in semi‐annual and annual reports to enable an assessment of the assets and liabilities, income and operations over the reporting period,
– the UCITS or other UCIs whose units/shares are to be acquired, may not, pursuant to their management regulations or instruments of incorporation, invest more than 10% of their total net assets in units/shares of other UCITS or other UCIs;
f) deposits with a credit institution which are repayable on demand or have the right to be withdrawn, and maturing in no more than 12 months, provided that the credit institution has its registered office in a Member State or, if the registered office of the credit institution is situated in a third country, provided that it is subject to prudential rules considered by the supervisory authority responsible for the Company, as equivalent to those laid down in EU Community law;
g) financial derivative instruments, including equivalent cash‐settled instruments which are dealt in on a regulated market referred to under paragraphs a), b) and c) above and/or financial derivative instruments which are dealt in over‐the‐counter (“OTC derivatives”), provided that: – the underlying consists of instruments within the meaning
of Article 41, paragraph (1) of the Law of December 17, 2010, financial indices, interest rates, foreign exchange rates or currencies, in which the Company may invest according to its investment objectives,
– the counterparties to OTC derivative transactions are institutions subject to prudential supervision, and belonging to the categories approved by the supervisory authority responsible for the Company, and
– the OTC derivatives are subject to reliable and verifiable valuation on a daily basis and can be sold, liquidated or closed by an offsetting transaction at any time at their fair value at the Company’s initiative;
h) money market instruments other than those dealt in on a regulated market and which are normally traded on the money market and are liquid, and whose value can be precisely determined at any time, provided the issue or issuer of such instruments is itself regulated for the purpose of protecting investors and savings, and provided that these investments are: – issued or guaranteed by a central, regional or local
authority or by a central bank of a Member State, the European Central Bank, the European Union or the European Investment Bank, a non‐Member State or, in case of a federal State, by one of the members making up the federation, or by a public international body to which one or more Member States belong, or
– issued by an undertaking any securities of which are dealt in on regulated markets referred to in paragraphs a), b) or c) above, or
– issued or guaranteed by an establishment subject to prudential supervision, in accordance with criteria defined by EU Community law, or issued or guaranteed by an
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establishment that is subject to and complies with supervisory rules considered by the supervisory authority responsible for the Company, to be at least as stringent as those required by EU Community law, or
– issued by other bodies belonging to the categories approved by the supervisory authority responsible for the Company, provided that investments in such instruments are subject to investor protection equivalent to that laid down in the first, the second or the third indent of this paragraph h) and provided that the issuer is a company whose capital and reserves amount to at least ten million euro (EUR 10,000,000) and which presents and publishes its annual financial statements in accordance with the fourth Directive 78/660/EEC or is an entity, which within a group of companies comprising one or several listed companies, is dedicated to the financing of the group, or is an entity which is dedicated to the financing of securitization vehicles which benefit from a banking liquidity line.
2) The Subfunds shall not, however, invest more than 10% of their total net assets in transferable securities or money market instruments other than those referred to in section 1).
3) The Management Company applies a risk management process which enables it to monitor and measure at any time the risk of the investment positions and their contribution to the overall risk profile of the portfolio and a process for accurate and independent assessment of the value of OTC derivatives. Each Subfund may, for the purpose of (i) hedging, (ii) efficient portfolio management and/or (iii) implementing its investment strategy, use all financial derivative instruments within the limits laid down by Part I of the Law of December 17, 2010. The global exposure is calculated taking into account the current value of the underlying assets, the counterparty risk, future market movements and the time available to liquidate the positions. This shall also apply to the following subparagraphs. As part of its investment policy and within the limits laid down in section 4) paragraph e), each Subfund may invest in financial derivative instruments, provided that the exposure to the underlying assets does not exceed in aggregate the investment limits laid down in section 4). If a Subfund invests in index‐based financial derivative instruments, these investments do not have to be combined to the limits laid down in section 4). When a transferable security or a money market instrument embeds a derivative instrument, the derivative instrument shall be taken into account when complying with the requirements of this section. The global exposure may be calculated through the commitment approach or the Value‐at‐Risk (VaR) methodology as specified for each Subfund in Chapter 22, “Subfunds”. The standard commitment approach calculation converts the financial derivative position into the market value of an equivalent position in the underlying asset of that derivative. When calculating global exposure using the commitment approach, the Company may benefit from the effects of netting and hedging arrangements. Value‐at‐Risk provides a measure of the potential loss that could arise over a given time interval under normal market conditions, and at a given confidence level. The Law of December 17, 2010 provides for a confidence level of 99% with a time horizon of one month. Unless otherwise specified in Chapter 22, each Subfund shall ensure that its global exposure to financial derivative instruments computed on a commitment basis does not exceed 100% of its total net assets or that the global exposure computed based on a Value‐at‐Risk method does not exceed either (i) 200% of the reference portfolio (benchmark) or (ii) 20% of the total net assets. The risk management of the Management Company supervises the compliance of these provision in accordance with the requirements of applicable circulars or regulation issued by the Luxembourg supervisory authority (Commission de Surveillance du Secteur Financier, CSSF) or any other European authority authorized to issue related regulation or technical standards.
4) a) No more than 10% of the total net assets of each Subfund may be invested in transferable securities or money market
instruments issued by the same issuer. In addition, the total value of transferable securities and money market instruments issued by those issuers in which a Subfund invests more than 5% of its total net assets, shall not exceed 40% of the value of its total net assets. No Subfund may invest more than 20% of its total net assets in deposits made with the same body. The risk exposure to a counterparty of a Subfund in an OTC derivative transaction and/or efficient portfolio management techniques may in aggregate not exceed the following percentages: – 10% of total net assets if the counterparty is a credit
institution referred to in Chapter 6, “Investment Restrictions”, section 1) paragraph f), or
– 5% of total net assets in other cases. b) The 40% limit specified in section 4) paragraph a) is not
applicable to deposits and OTC derivative transactions made with financial institutions subject to prudential supervision.
Irrespective of the limits specified in section 4) paragraph a), each Subfund shall not combine, where this would lead to investing more than 20% of its total net assets in a single body, any of the following: – investments in transferable securities or money market
instruments issued by that body, or – deposits made with that body, or – exposures arising from OTC derivatives transactions
undertaken with that body. c) The limit of 10% stipulated in section 4) paragraph a) is raised
to a maximum of 35% if the transferable securities or money market instruments are issued or guaranteed by a Member State, by its public local authorities, by a non‐Member State or by public international bodies to which one or more Member States belong.
d) The 10% limit stipulated in section 4) paragraph a) is raised to 25% for bonds issued by a credit institution which has its registered office in a Member State and is subject by law to special public supervision designed to protect bondholders. In particular, sums deriving from the issue of those bonds must be invested in accordance with the legal requirements in assets which, during the whole period of validity of the bonds, are capable of covering claims attaching to the bonds and which, in case of bankruptcy of the issuer, would be used on a priority basis for the reimbursement of the principal and payment of the accrued interest. If a Subfund invests more than 5% of its total net assets in bonds referred to in this paragraph which are issued by a single issuer, the total value of these investments may not exceed 80% of the Subfund’s total net assets.
e) The transferable securities and money market instruments referred to in paragraphs c) and d) of this section 4) shall not be taken into account for the purpose of applying the limit of 40% referred to under paragraph a) of this section. The limits specified under paragraphs a), b), c) and d) shall not be combined; thus investments in transferable securities or money market instruments issued by the same issuer or in deposits or derivative instruments made with this body carried out in accordance with paragraphs a), b), c) and d) shall not exceed in total 35% of a Subfund’s total net assets. Companies which belong to the same group for the purposes of the preparation of consolidated financial statements in accordance with Directive 83/349/EEC as amended or restated or in accordance with internationally recognized accounting rules, shall be regarded as a single issuer for the purpose of calculating the investment limits specified in the present section 4). A Subfund may cumulatively invest up to a limit of 20% of its total net assets in transferable securities and money market instruments within the same group.
f) The limit of 10% stipulated in section 4) paragraph a) is raised to 100% if the transferable securities and money market instruments involved are issued or guaranteed by a Member State, one or more of its local authorities, by any other state which is a member of the Organisation for Economic Cooperation and Development (“OECD”) or by Brazil or Singapore, or by a public international body to
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which one or more Member States of the European Union belong. In such case, the Subfund concerned must hold securities or money market instruments from at least six different issues, and the securities or money market instruments of any single issue shall not exceed 30% of the Subfund’s total assets.
g) Without prejudice to the limits laid down in section 6), the limits laid down in the present section 4) are raised to a maximum of 20% for investments in shares and/or debt securities issued by the same body, when the aim of the Subfund’s investment policy is to replicate the composition of a certain stock or debt securities index which is recognized by the supervisory authority responsible for the Company, on the following basis: – the composition of the index is sufficiently diversified, – the index represents an adequate benchmark for the
market to which it relates, – it is published in an appropriate manner.
The aforementioned limit of 20% may be raised to a maximum of 35% where that proves to be justified by exceptional market conditions in particular in regulated markets where certain transferable securities or money market instruments are highly dominant. The investment up to this limit is only permitted for a single issuer.
5) The Company will not invest more than 10% of the total net assets of any Subfund in units/shares of other UCITS and/or in other UCIs (“Target Funds”) pursuant to section 1) paragraph e), unless otherwise specified in the investment policy applicable to a Subfund as described in Chapter 22, “Subfunds”. Where a higher limit as 10% is specified in Chapter 22, “Subfunds”, the following restrictions shall apply: – No more than 20% of a Subfund’s total net assets may be
invested in units/shares of a single UCITS or other UCI. For the purpose of application of this investment limit, each compartment of a UCITS or other UCI with multiple compartments is to be considered as a separate issuer provided that the principle of segregation of the obligations of the various compartments vis‐à‐vis third parties is ensured.
– Investments made in units/shares of UCI other than UCITS may not in aggregate exceed 30% of the total net assets of the Subfund.
Where a Subfund invests in units/shares of other UCITS and/or other UCI that are managed, directly or by delegation, by the same management company or by any other company with which the Company is linked by common management or control, or by a direct or indirect holding of more than 10% of the capital or votes (“Affiliated Funds”), the Company or the other company may not charge subscription or redemption fees on account of the Subfund’s investment in the units/shares of such Affiliated Funds.
Unless specified otherwise in Chapter 22, “Subfunds”, no management fee corresponding to the volume of these investments in Affiliated Funds may be charged at the level of the respective Subfund, unless the Affiliated Fund itself does not charge any management fee. Investors should note that for investments in units/shares of other UCITS and/or other UCI the same costs may generally arise both at the Subfund level and at the level of the other UCITS and/or UCI itself.
6) a) The Company’s assets may not be invested in securities carrying voting rights which enable the Company to exercise significant influence over the management of an issuer.
b) Moreover, the Company may not acquire more than – 10% of the non‐voting shares of the same issuer; – 10% of the debt securities of the same issuer; – 25% of the units/shares of the same UCITS or other UCI; – 10% of the money market instruments of single issuer. In the last three cases, the restriction shall not apply if the gross amount of bonds or money market instruments, or the net amount of the instruments in issue cannot be calculated at the time of acquisition.
c) The restrictions set out under paragraphs a) and b) shall not apply to:
– transferable securities and money market instruments issued or guaranteed by a Member State or its local authorities,
– transferable securities and money market instruments issued or guaranteed by a non‐Member State of the European Union,
– transferable securities and money market instruments issued by public international bodies to which one or more Member States of the European Union belong,
– shares held by the Company in the capital of a company which is incorporated in a non‐Member State of the European Union and which invests its assets mainly in securities of issuing bodies having their registered office in that State, where under the legislation of that State, such a holding represents the only way in which the Company can invest in the securities of issuing bodies of that State. This derogation, however, shall apply only if in its investment policy the company from the non‐Member State of the European Union complies with the limits stipulated in section 4, paragraphs a) to e), section 5, and section 7 paragraphs a) and b).
7) The Company may not borrow any money for any Subfund except for: a) the purchase of foreign currency using a back‐to‐back loan; b) an amount equivalent to not more than 10% of the Subfund’s
total net assets and borrowed on a temporary basis. 8) The Company may not grant loans or act as guarantor for third
parties. 9) To ensure efficient portfolio management, however, each Subfund
may, in compliance with applicable Luxembourg regulations, enter into securities lending transactions.
10) The Company may not invest its assets directly in real estate, precious metals or certificates representing precious metals and goods.
11) The Company may not carry out uncovered sales of transferable securities, money market instruments or other financial instruments referred to in section 1) paragraph e), g) and h).
12) Except in relation to borrowing conducted within the limitations set out in the Prospectus, the Company may not pledge the assets of the Company or assign them as collateral. In such permitted cases and unless stipulated otherwise in Chapter 22 “Subfunds”, not more than 10% of the assets of each Subfund shall be pledged or assigned. The collateral that must normally be made available to recognized securities settlement systems or payment systems in accordance with their respective regulations for the purpose of guaranteeing settlement within these systems, and the customary margin deposits for derivatives transactions, shall not be regarded as being a pledge under the terms of this regulation.
The restrictions set out above shall not apply to the exercise of subscription rights. During the first six months following official authorization of a Subfund in Luxembourg, the restrictions set out in section 4) and 5) above need not be complied with, provided that the principle of risk‐spreading is observed. If the limits referred to above are exceeded for reasons beyond the control of the Company or as a result of the exercise of subscription rights, the Company shall as a matter of priority remedy that situation, taking due account of the interests of the Shareholders. The Company is entitled to issue, at any time, further investment restrictions, in the interests of the Shareholders, if for example such restrictions are necessary to comply with the legislation and regulations in those countries in which the Company’s Shares are or will be offered for sale.
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7. Risk Factors Prospective investors should consider the following risk factors before investing in the Company. However, the risk factors set out below do not purport to be an exhaustive list of risks related to investments in the Company. Prospective investors should read the entire Prospectus, and where appropriate consult with their legal, tax and investment advisers, in particular regarding the tax consequences of subscribing, holding, converting, redeeming or otherwise disposing of Shares under the law of their country of citizenship, residence or domicile (further details are set out in Chapter 9, “Expenses and Taxes”). Investors should be aware that the investments of the Company are subject to market fluctuations and other risks associated with investments in transferable securities and other financial instruments. The value of the investments and the resulting income may go up or down and it is possible that investors will not recoup the amount originally invested in the Company, including the risk of loss of the entire amount invested. There is no assurance that the investment objective of a particular Subfund will be achieved or that any increase in the value of the assets will occur. Past performance is not a reliable indicator of future results. The Net Asset Value of a Subfund may vary as a result of fluctuations in the value of the underlying assets and the resulting income. Investors are reminded that in certain circumstances their right to redeem Shares may be suspended. Depending on the currency of the investor’s domicile, exchange‐rate fluctuations may adversely affect the value of an investment in one or more of the Subfunds. Moreover, in the case of an Alternate Currency Class in which the currency risk is not hedged, the result of the associated foreign exchange transactions may have a negative influence on the performance of the corresponding Share Class. Market Risk Market risk is a general risk which may affect all investments to the effect that the value of a particular investment could change in a way that is detrimental to the Company’s interests. In particular, the value of investments may be affected by uncertainties such as international, political and economic developments or changes in government policies. Interest Rate Risk Subfunds investing in fixed income securities may fall in value due to fluctuations in interest rates. Generally, the value of fixed income securities rises when interest rates fall. Conversely, when interest rates rise, the value of fixed income securities can generally be expected to decrease. Long‐term fixed income securities will normally be subject to greater price volatility than short‐term fixed income securities. Foreign Exchange Risk The Subfunds’ investments may be made in other currencies than the relevant Reference Currency and therefore be subject to currency fluctuations, which may affect the Net Asset Value of the relevant Subfunds favorably or unfavorably. Currencies of certain countries may be volatile and therefore affect the value of securities denominated in such currencies. If the currency in which an investment is denominated appreciates against the Reference Currency of the relevant Subfund, the value of the investment will increase. Conversely, a decline in the exchange rate of the currency would adversely affect the value of the investment. The Subfunds may enter into hedging transactions on currencies to protect against a decline in the value of investments denominated in currencies other than the Reference Currency, and against any increase in the cost of investments denominated in currencies other than the Reference Currency. However, there is no guarantee that the hedging will be successful. Although it is the policy of the Company to hedge the currency exposure of Subfunds against their respective Reference Currencies, hedging transactions may not always be possible and currency risks cannot therefore be excluded. Credit Risk Subfunds investing in fixed income securities are subject to the risk that issuers may not make payments on such securities. An issuer suffering an adverse change in its financial condition could lower the credit quality of
a security, leading to greater price volatility of the security. A lowering of the credit rating of a security may also offset the security’s liquidity. Subfunds investing in lower quality debt securities are more susceptible to these problems and their value may be more volatile. Counterparty Risk The Company may enter into over‐the‐counter transactions which will expose the Subfunds to the risk that the counterparty may default on its obligation to perform under such contracts. In the event of bankruptcy of the counterparty, the Subfunds could experience delays in liquidating the position and significant losses. Liquidity Risk There is a risk that the Company will suffer liquidity issues because of unusual market conditions, an unusually high volume of redemption requests or other reasons. In such case the Company may not be able to pay redemption proceeds within the time period stated in this Prospectus. Management Risk The Company is actively managed and the Subfunds may therefore be subject to management risks. The Company will apply its investment strategy (including investment techniques and risk analysis) when making investment decisions for the Subfunds, however, no assurance can be given that the investment decision will achieve the desired results. The Company may in certain cases decide not to use investment techniques, such as derivative instruments, or they may not be available, even under market conditions where their use could be beneficial for the relevant Subfund. Investment Risk Investments in Equities The risks associated with investments in equity (and equity‐type) securities include in particular significant fluctuations in market prices, adverse issuer or market information and the subordinate status of equity compared to debt securities issued by the same company. Investors should also consider the risk attached to fluctuations in exchange rates, possible imposition of exchange controls and other restrictions. Investments in Fixed Income Securities Investments in securities of issuers from different countries and denominated in different currencies offer potential benefits not available from investments solely in securities of issuers from a single country, but also involve certain significant risks that are not typically associated with investing in the securities of issuers located in a single country. Among the risks involved are fluctuations in interest rates as well as fluctuations in currency exchange rates (as further described above under section “Interest Rate Risk” and “Foreign Exchange Risk”) and the possible imposition of exchange control regulations or other laws or restrictions applicable to such investments. A decline in the value of a particular currency in comparison with the Reference Currency of the Subfund would reduce the value of certain portfolio securities that are denominated in such a currency. An issuer of securities may be domiciled in a country other than the country in whose currency the instrument is denominated. The values and relative yields of investments in the securities markets of different countries, and their associated risks, may fluctuate independently of each other. As the Net aAset Value of a Subfund is calculated in its Reference Currency, the performance of investments denominated in a currency other than the Reference Currency will depend on the strength of such currency against the Reference Currency and on the interest rate environment in the country issuing the currency. In the absence of other events that could otherwise affect the value of non‐Reference Currency investments (such as a change in the political climate or an issuer’s credit quality), an increase in the value of the non‐Reference Currency can generally be expected to increase the value of a Subfund’s non‐Reference Currency investments in terms of the Reference Currency. The Subfunds may invest in investment grade debt securities. Investment grade debt securities are assigned ratings within the top rating categories by rating agencies on the basis of the creditworthiness or risk of default. Rating agencies review, from time to time, such
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assigned ratings and debt securities may therefore be downgraded in rating if economic circumstances impact the relevant debt securities issue. Moreover, the Subfunds may invest in debt instruments in the non‐investment grade sector (high yield debt securities). Compared to investment grade debt securities, high yield debt securities are generally lower‐rated and will usually offer higher yields to compensate for their reduced creditworthiness or increased risk of default. Investments in Warrants The leveraged effect of investments in warrants and the volatility of warrant prices make the risks attached to investments in warrants higher than in the case of investment in equities. Because of the volatility of warrants, the volatility of the share price of any Subfund investing in warrants may potentially increase. Investments in Target Funds Investors should note that investments in Target Funds may incur the same costs both at the Subfund level and at the level of the Target Funds. Furthermore, the value of the units or shares in the Target Funds may be affected by currency fluctuations, currency exchange transactions, tax regulations (including the levying of withholding tax) and any other economic or political factors or changes in the countries in which the Target Fund is invested, along with the risks associated with exposure to the emerging markets. The investment of the Subfunds’ assets in units or shares of Target Funds entails a risk that the redemption of the units or shares may be subject to restrictions, with the consequence that such investments may be less liquid than other types of investment. Use of Derivatives While the use of financial derivative instruments can be beneficial, financial derivative instruments also involve risks different from, and, in certain cases, greater than, the risks presented by more traditional investments. Derivatives are highly specialized financial instruments. The use of a derivative requires an understanding not only of the underlying instrument but also of the derivative itself, without there being any opportunity to observe the performance of the derivative under all possible market conditions. If a derivative transaction is particularly large or if the relevant market is illiquid, it may not be possible to initiate a transaction or liquidate a position at an advantageous price. Since many derivatives have a leverage component, adverse changes in the value or level of the underlying asset, rate or index may result in a loss substantially greater than the amount invested in the derivative itself. The other risks associated with the use of derivatives include the risk of mispricing or improper valuation of derivatives and the inability of derivatives to correlate perfectly with underlying assets, rates and indices. Many derivatives are complex and often valued subjectively. Improper valuations can result in increased cash payment requirements to counterparties or a loss of value to the Company. Consequently, the Company’s use of derivatives may not always be an effective means of, and sometimes could be counterproductive to, furthering the Company’s investment objectives. Derivative instruments also carry the risk that a loss may be sustained by the Company as a result of the failure of the counterparty to a derivative to comply with the terms of the contract (as further described under “Counterparty Risk” above). The default risk for exchange‐traded derivatives is generally less than for privately negotiated derivatives, since the clearing house, which is the issuer or counterparty to each exchange‐traded derivative, provides a guarantee of performance. In addition, the use of credit derivatives (credit default swaps, credit linked notes) carries the risk of a loss arising for the Company if one of the entities underlying the credit derivative defaults. Moreover, OTC derivatives may bear liquidity risks. The counterparties with which the Company effects transactions might cease making markets or quoting prices in certain of the instruments. In such cases, the Company might not be in a position to enter into a desired transaction in currencies, credit default swaps or total return swaps or to enter into an offsetting transaction with respect to an open position which might adversely affect its performance. Unlike exchange‐traded derivatives, forward, spot and option contracts on currencies do not provide the
Management Company with the possibility to offset the Company’s obligations through an equal and opposite transaction. Therefore, through entering into forward, spot or options contracts, the Company may be required, and must be able, to perform its obligations under these contracts. The use of derivative instruments may or may not achieve its intended objective. Investments in Hedge Fund Indices In addition to the risks entailed in traditional investments (such as market, credit and liquidity risks), investments in hedge fund indices entail a number of specific risks that are set out below. The hedge funds underlying the respective index, as well as their strategies, are distinguished from traditional investments primarily by the fact that their investment strategy may involve the short sale of securities and, on the other hand, by using borrowings and derivatives, a leverage effect may be achieved. The leverage effect entails that the value of a fund’s assets increases faster if capital gains arising from investments financed by borrowing exceed the related costs, notably the interest on borrowed monies and premiums payable on derivative instruments. A fall in prices, however, causes a faster decrease in the value of the Company’s assets. The use of derivative instruments, and in particular of short selling, can in extreme cases lead to a total loss in value. Most of the hedge funds underlying the respective index were established in countries in which the legal framework, and in particular the supervision by the authorities, either does not exist or does not correspond to the standards applied in western Europe or other comparable countries. The success of hedge funds depends in particular on the competence of the fund managers and the suitability of the infrastructure available to them. These financial indices shall be chosen in accordance with the eligibility criteria as set out in Article 9 of the Grand Ducal Regulation of 8 February 8, 2008 clarifying Article 44 of the Law of December 17, 2010. Investments in Commodity and Real Estate Indices Investments in products and/or techniques providing an exposure to commodity, hedge fund and real estate indices differ from traditional investments and entail additional risk potential (e.g. they are subject to greater price fluctuations). When included in a broadly diversified portfolio, however, investments in products and/or techniques providing an exposure to commodity and real estate indices generally show only a low correlation to traditional investments. These financial indices shall be chosen in accordance with the eligibility criteria as set out in Article 9 of the Grand Ducal Regulation of 8 February 8, 2008 clarifying Article 44 of the Law of December 17, 2010. Investments in illiquid Assets The Company may invest up to 10% of the total net assets of each Subfund in transferable securities or money market instruments which are not traded on stock exchanges or regulated markets. It may therefore be the case that the Company cannot readily sell such securities. Moreover, there may be contractual restrictions on the resale of such securities. In addition, the Company may under certain circumstances trade futures contracts or options thereon. Such instruments may also be subject to illiquidity in certain situations when, for example, market activity decreases, or when a daily fluctuation limit has been reached. Most futures exchanges restrict the fluctuations in future contract prices during a single day by regulations referred to as “daily limits”. During a single trading day no trades may be executed at prices above or below these daily limits. When the price of a futures contract has increased or decreased to the limit, positions can neither be purchased nor compensated. Futures prices have occasionally moved outside the daily limit for several consecutive days with little or no trading. Similar occurrences may prevent the Company from promptly liquidating unfavorable positions and therefore result in losses. For the purpose of calculating the Net Asset Value, certain instruments, which are not listed on an exchange, for which there is limited liquidity, will be valued based upon the average price taken from at least two major primary dealers. These prices may affect the price at which Shares are redeemed or purchased. There is no guarantee that in the event of a sale of such instruments the price thus calculated can be achieved.
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Investments in Asset‐Backed Securities and Mortgage‐Backed Securities The Subfunds may have exposure to asset‐backed securities (“ABS”) and mortgage‐backed securities (“MBS”). ABS and MBS are debt securities issued by a special purpose vehicle (SPV) with the aim to pass through of liabilities of third parties other than the parent company of the issuer. Such securities are secured by an asset pool (mortgages in the case of MBS and various types of assets in the case of ABS). Compared to other traditional fixed income securities such as corporate or government issued bonds, the obligations associated with these securities may be subject to greater counterparty, liquidity and interest rate risks as well as other types of risks, such as reinvestment risk (arising from included termination rights, prepayment options), credit risks on the underlying assets and advance repayments of principal resulting in a lower total return (especially, if repayment of the debt is not concurrent with redemption of the assets underlying the claims). ABS and MBS assets may be highly illiquid and therefore prone to substantial price volatility. Small to medium‐sized Companies A number of Subfunds may invest primarily in small and mid‐cap companies. Investing in the securities of smaller, lesser‐known companies involves greater risk and the possibility of greater price volatility due to the less certain growth prospects of smaller firms, the lower degree of liquidity of the markets for such stocks and the greater sensitivity of smaller companies to changing market conditions. Investment in REITs REITs (real estate investment trusts) are listed companies – not open‐ended undertakings for collective investment in transferable securities under Luxembourg law – which buy and/or develop real estate as long‐term investments. They invest the bulk of their assets directly in real estate and derive most of their income from rent. Special risk considerations apply to investments in publicly traded securities of companies active primarily in the real estate sector. These risks include: the cyclical nature of real estate securities, risks connected with the general and local economic situation, supply overhangs and fierce competition, increases in land tax and operating costs, demographic trends and changes in rental income, changes to the provisions of building law, losses from damage and expropriation, environmental risks, rent ceilings imposed by administrative provisions, changes in real estate prices in residential areas, risks of associated parties, changes in the attractiveness of real estate to tenants, interest rate rises and other factors influencing the real estate capital market. As a rule, interest rate rises result in higher financing costs, which could reduce – either directly or indirectly – the value of the respective Subfund’s investment. Investments in Russia Custodial and registration risk in Russia – Although exposure to the Russian equity markets is substantially
hedged through the use of GDRs and ADRs, individual Subfunds may, in accordance with their investment policy, invest in securities which require the use of local depository and/or custodial services. Currently, evidence of legal title to shares is maintained in “book‐entry” form in Russia.
– The significance of the register is crucial to the custodial and registration process. Registrars are not subject to effective government supervision and it is possible for the Subfund to lose its registration through fraud, negligence or mere oversight. Furthermore, while companies with more than 1,000 shareholders are required under Russian law to maintain independent registrars that meet certain statutory criteria, in practice this regulation has not been strictly enforced. Because of this lack of independence, the management of a company can potentially exert significant influence over the make‐up of that company’s shareholder base.
– Distortion or destruction of the register could substantially impair, or in certain cases erase, the Subfund’s holdings of the relevant company’s shares. Although the Custodian Bank has made arrangements for any appointed registrars to be adequately monitored by a specialized service provider in Russia, neither the Subfund, the Investment Manager, the Custodian Bank, the Management Company, the Board of Directors of the Management Company nor any of their Distributors can make any
representation or warranty about, or any guarantee of, the registrars’ actions or performance. Such risk will be borne by the Subfund.
At the present time, Russian law provides for a somewhat limited protection for the “good faith purchaser”, as this protection is not available in respect of an asset that has been stolen from the original owner or otherwise was taken out of its possession without its will. At the present time, there may be some risk of a challenge by a prior owner of the Subfund’s ownership to shares, in which case the value of the Subfund’s assets would be impaired (although in respect of exchange traded securities this risk appears to be remote). However, Russian Parliament is currently considering substantial amendments to the Russian Civil Code, which will expressly grant unlimited bona fide purchase protection to purchasers of quoted securities. The current expectations are that these rules come into effect in the course of 2013. Direct investments in the Russian market are made in principle via equities or equity‐type securities traded on the Open Joint Stock Company “Moscow Exchange MICEX‐RTS” (the “Moscow Exchange”), in accordance with Chapter 6, “Investment Restrictions” and unless stipulated otherwise in Chapter 22 “Subfunds”. Any other direct investments, which are not made via the Moscow Exchange will fall within the 10%‐rule of Article 41 (2) a) of the Law of December 17, 2010. Hedged Share Class Risk The hedging strategy applied to hedged Share Classes may vary from one Subfund to another. Each Subfund will apply a hedging strategy which aims to reduce currency risk between the Reference Currency of the respective Subfund and the nominal currency of the hedged Share Class while taking various practical considerations into account. The hedging strategy aims to reduce, but may not totally eliminate, currency exposure. Investors should note that there is no segregation of liabilities between the individual Share Classes within a Subfund. Hence, there is a risk that under certain circumstances, hedging transactions in relation to a hedged Share Class could result in liabilities affecting the Net Asset Value of the other Share Classes of the same Subfund. In such case assets of other Share Classes of such Subfund may be used to cover the liabilities incurred by the hedged Share Class. Clearing and Settlement Procedures Different markets also have different clearing and settlement procedures. Delays in settlement may result in a portion of the assets of a Subfund remaining temporarily uninvested and no return is earned thereon. The inability of the Company to make intended security purchases due to settlement problems could cause a Subfund to miss attractive investment opportunities. The inability to dispose of portfolio securities due to settlement problems could result either in losses to a Subfund due to subsequent declines in value of the portfolio security or, if a Subfund has entered into a contract to sell the security, could result in possible liability to the purchaser. Investment Countries The issuers of fixed income securities and the companies, the shares of which are purchased, are generally subject to different accounting, auditing and financial reporting standards in the different countries of the world. The volume of trading, volatility of prices and liquidity of issuers may vary from one market or country to another. In addition, the level of government supervision and regulation of securities exchanges, securities dealers and listed and unlisted companies is different throughout the world. The laws and regulations of some countries may restrict the Company’s ability to invest in securities of certain issuers located in those countries. Concentration on certain Countries/Regions Where a Subfund restricts itself to investing in securities of issuers located in a particular country or countries, such concentration will expose the Subfund to the risk of adverse social, political or economic events which may occur in that country or countries. The risk increases if the country in question is an emerging market. Investments in these Subfunds are exposed to the risks which have been described; these may be exacerbated by the special factors pertaining to this emerging market.
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Investments in Emerging Countries Investors should note that certain Subfunds may invest in less developed or emerging markets. Investing in emerging markets may carry a higher risk than investing in developed markets. The securities markets of less developed or emerging markets are generally smaller, less developed, less liquid and more volatile than the securities markets of developed markets. In addition, there may be a higher than usual risk of political, economic, social and religious instability and adverse changes in government regulations and laws in less developed or emerging markets, which could affect the investments in those countries. The assets of Subfunds investing in such markets, as well as the income derived from the Subfund, may also be effected unfavorably by fluctuations in currency rates and exchange control and tax regulations and consequently the Net Asset Value of Shares of these Subfunds may be subject to significant volatility. Also, there might be restrictions on the repatriation of the capital invested. Some of these markets may not be subject to accounting, auditing and financial reporting standards and practices comparable to those of more developed countries and the securities markets of such markets may be subject to unexpected closure. In addition, there may be less government supervision, legal regulation and less well‐defined tax laws and procedures than in countries with more developed securities markets. Moreover, settlement systems in emerging markets may be less well‐organized than in developed markets. Thus, there may be a risk that settlement may be delayed and that cash or securities of the concerned Subfunds may be in jeopardy because of failures or of defects in the systems. In particular, market practice may require that payment shall be made prior to receipt of the security which is being purchased or that delivery of a security must be made before payment is received. In such cases, default by a broker or bank through whom the relevant transaction is effected might result in a loss being suffered by the Subfunds investing in emerging market securities. It must also be borne in mind that companies are selected regardless of their market capitalization (micro, small, mid, large caps), sector or geographical location. This may lead to a concentration in geographical or sector terms. Subscriptions in the relevant Subfunds are thus only suitable for investors who are fully aware of, and able to bear, the risks related to this type of investment. Industry/Sector Risk The Subfunds may invest in specific industries or sectors or a group of related industries. These industries or sectors may, however, be affected by market or economic factors, which could have a major effect on the value of the Subfunds’ investments. Securities Lending Securities lending transactions involve counterparty risk, including the risk that the lent securities may not be returned or returned in a timely manner. Should the borrower of securities fail to return the securities lent by a Subfund, there is a risk that the collateral received may be realized at a lower value than the securities lent, whether due to inaccurate pricing of the collateral, adverse market movements, decrease in the credit rating of the issuer of the collateral or the illiquidity of the market in which the collateral is traded which could adversely impact the performance of the Subfund. Credit Suisse AG, which is the Custodian Bank's as well as the Management Company's parent company, acts as the exclusive principal borrower and counterparty for securities lending transactions. It may engage in activities that might result in conflicts of interests with adverse effect on the performance of the Subfund. In such circumstances, Credit Suisse AG has undertaken to use its reasonable endeavours to resolve any such conflicts of interest fairly (having regard to its or his respective obligations and duties) and to ensure that the interests of the Fund and the Shareholders are not unfairly prejudiced. Taxation The proceeds from the sale of securities in some markets or the receipt of any dividends and other income may be or may become subject to tax, levies, duties or other fees or charges imposed by the authorities in that market, including taxation levied by withholding at source. It is possible that the tax law (and/or the current interpretation of the law) as well as the practice in countries, into which the Subfunds invest or
may invest in the future, might change. As a result, the Company could become subject to additional taxation in such countries that is not anticipated either at the date of this Prospectus or when investments are made, valued or disposed of. 8. Net Asset Value Unless otherwise specified in Chapter 22, “Subfunds”, the Net Asset Value of the Shares of each Subfund shall be calculated in the Reference Currency of the respective Subfund and shall be determined under the responsibility of the Company’s Board of Directors in Luxembourg on each Banking Day on which banks are normally open all day for business in Luxembourg (each such day being referred to as a “Valuation Day”). In case the Valuation Day is not a full Banking Day in Luxembourg, the Net Asset Value of that Valuation Day will be calculated on the next following Banking Day. If a Valuation Day falls on a day which is a holiday in countries whose stock exchanges or other markets are decisive for valuing the majority of a Subfund’s assets, the Company may decide, by way of exception, that the Net Asset Value of the Shares in this Subfund will not be determined on such days.For determining the Net Asset Value, the assets and liabilities of the Company shall be allocated to the Subfunds (and to the individual Share Classes within each Subfund), the calculation is carried out by dividing the Net Asset Value of the Subfund by the total number of Shares outstanding for the relevant Subfund or the relevant Share Class. If the Subfund in question has more than one Share Class, that portion of the Net Asset Value of the Subfund attributable to the particular Class will be divided by the number of issued Shares of that Class. The Net Asset Value of an Alternate Currency Class shall be calculated first in the Reference Currency of the relevant Subfund. The Net Asset Value of the Alternate Currency Class shall be calculated through conversion at the mid‐market rate between the Reference Currency and the Alternate Currency of the relevant Share Class. The Net Asset Value of the Alternate Currency Class will in particular reflect the costs and expenses incurred for the currency conversion in connection with the subscription, redemption and conversion of Shares in this Class and for hedging the currency risk. Unless otherwise specified in Chapter 22, “Subfunds”, the assets of each Subfund shall be valued as follows: a) Securities which are listed or regularly traded on a stock exchange
shall be valued at the last available traded price. If such a price is not available for a particular trading day, the closing mid‐price (the mean of the closing bid and ask prices) or alternatively the closing bid price may be taken as a basis for the valuation.
b) If a security is traded on several stock exchanges, the valuation shall be made by reference to the exchange which is the main market for this security.
c) If a security is traded on a secondary market with regulated trading among securities dealers (with the effect that the price reflects market conditions), the valuation may be based on this secondary market.
d) Securities traded on a regulated market shall be valued in the same way as those listed on a stock exchange.
e) Securities that are not listed on a stock exchange and are not traded on a regulated market shall be valued at their last available market price. If no such price is available, the Company shall value these securities in accordance with other criteria to be established by the Board of Directors and on the basis of the probable sales price, the value of which shall be estimated with due care and in good faith.
f) Derivatives shall be treated in accordance with the above. OTC swap transactions will be valued on a consistent basis based on bid, offer or mid prices as determined in good faith pursuant to procedures established by the Board of Directors. When deciding whether to use the bid, offer or mid‐prices, the Board of Directors will take into consideration the anticipated subscription or redemption flows, among other parameters. If, in the opinion of the Board of Directors, such values do not reflect the fair market value of the relevant OTC swap transactions, the value of such OTC swap transactions will be determined in good faith by the Board of Directors or by such other method as it deems in its discretion appropriate.
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g) The valuation price of a money market instrument which has a maturity or remaining term to maturity of less than 12 months and does not have any specific sensitivity to market parameters, including credit risk, shall, based on the net acquisition price or on the price at the time when the investment’s remaining term to maturity falls below 12 months, be progressively adjusted to the repayment price while keeping the resulting investment return constant. In the event of a significant change in market conditions, the basis for the valuation of different investments shall be brought into line with the new market yields.
h) Units or shares of UCITS or other UCIs shall be valued on the basis of their most recently calculated Net Asset Value, where necessary by taking due account of the redemption fee. Where no Net Asset Value and only buy and sell prices are available for units or shares of UCITS or other UCI, the units or shares of such UCITS or other UCIs may be valued at the mean of such buy and sell prices.
i) Fiduciary and fixed‐term deposits shall be valued at their respective nominal value plus accrued interest.
The amounts resulting from such valuations shall be converted into the Reference Currency of each Subfund at the prevailing mid‐market rate. Foreign exchange transactions conducted for the purpose of hedging currency risks shall be taken into consideration when carrying out this conversion. If a valuation in accordance with the above rules is rendered impossible or incorrect due to particular or changed circumstances, the Company’s Board of Directors shall be entitled to use other generally recognized and auditable valuation principles in order to reach a proper valuation of the Subfund’s assets. Investments which are difficult to value (in particular those which are not listed on a secondary market with a regulated price‐setting mechanism) are valued on a regular basis using comprehensible, transparent criteria. For the valuation of private equity investments, the Company may use the services of third parties which have appropriate experience and systems in this area. The Company’s Board of Directors and the auditor shall monitor the comprehensibility and transparency of the valuation methods and their application. The Net Asset Value of a Share shall be rounded up or down, as the case may be, to the next smallest unit of the Reference Currency which is currently used, unless otherwise specified in Chapter 22, “Subfunds”. The Net Asset Value of one or more Subfunds may also be converted into other currencies at the mid‐market rate should the Company’s Board of Directors decide to effect the issue and redemption of Shares in one or more other currencies. Should the Board of Directors determine such currencies, the Net Asset Value of the respective Shares in these currencies shall be rounded up or down to the next smallest unit of currency. In exceptional circumstances, further valuations may be carried out on the same day; such valuations will be valid for any applications for subscription and/or redemption subsequently received. The total Net Asset Value of the Company shall be calculated in Swiss francs. Adjustment of the Net Asset Value (Single Swing Pricing) In order to protect existing Shareholders and subject to the conditions set out in Chapter 22, “Subfunds”, the Net Asset Value per Share Class of a Subfund may be adjusted upwards or downwards by a maximum percentage (“swing factor”) indicated in Chapter 22, “Subfunds”, in the event of a net surplus of subscription or redemption applications on a particular Valuation Day. In such case the same Net Asset Value applies to all incoming and outgoing investors on that particular Valuation Day. The adjustment of the Net Asset Value aims to cover in particular but not exclusively transaction costs, tax charges and bid/offer spreads incurred by the respective Subfund due to subscriptions, redemptions and/or conversions in and out of the Subfund. Existing Shareholders would no longer have to indirectly bear these costs, since they are directly integrated into the calculation of the Net Asset Value and hence, are borne by incoming and outgoing investors. The Net Asset Value may be adjusted on every Valuation Day on a net deal basis. The Board of Directors can set a threshold (net capital flows that needs to be exceeded) to apply the adjustment to the Net Asset Value. Shareholders should note that the performance calculated on the basis of the adjusted Net Asset Value might not reflect the true portfolio performance as a consequence of the adjustment of the Net Asset Value.
9. Expenses and Taxes i. Taxes The following summary is based on the laws and practices currently applicable in the Grand Duchy of Luxembourg and is subject to changes thereto. Unless otherwise specified in Chapter 22, “Subfunds”, the Company’s assets are subject to a tax (“taxe d’abonnement”) in the Grand Duchy of Luxembourg of 0.05% p.a., payable quarterly. In the case of Share Classes that may only be acquired by institutional investors (pursuant to Article 174 (2) c) of the Law of December 17, 2010), this tax rate is 0.01% p.a. The Net Asset Value of each Subfund at the end of each quarter is taken as the basis for calculation. The Company is not subject to corporate income tax, municipal business tax and net wealth tax in Luxembourg. With the entry into force of the Luxembourg Law of June 21, 2005, European Council Directive 2003/48/EC on the taxation of savings income in the form of interest payments has been subsumed into Luxembourg law with effect from July 1, 2005. In accordance with this Directive, withholding tax is payable on interest income which, pursuant to said Directive, accrues from distributions or from the transfer, conversion or redemption of Shares of a Subfund and is directly credited by a paying agent to a beneficial owner who is a natural person resident in another EU Member State. The above shall only apply, however, if the investments of the Subfund which generate interest income as defined in European Council Directive 2003/48/EC exceed 15% of the Subfund’s total net assets in the case of a distribution or 25% of total net assets in the case of the transfer, conversion or redemption of distribution or capital growth Shares. The rate at which such interest is taxable is 35%. However, beneficial owners entitled to such interest payments who receive the payments from a paying agent which is domiciled in Luxemburg or maintains a permanent establishment there may request this paying agent to opt for an official exchange of information instead of the procedure mentioned above. This option, provided for under the Luxembourg Law of June 21, 2005, entails the forwarding of information concerning the interest payments to the tax authorities of the member state in which the beneficial owner of the shares is resident. Dividends, interest, income and gains received by the Company on its investments may be subject to non‐recoverable withholding tax or other taxes in the countries of origin. According to the legislation currently in force in Luxembourg, Shareholders are not required to pay any income, gift, inheritance or other taxes in Luxembourg unless they are resident or domiciled in Luxembourg or maintain a permanent establishment there. The tax consequences will vary for each investor in accordance with the laws and practices currently in force in a Shareholder’s country of citizenship, residence or temporary domicile, and in accordance with his or her personal circumstances. Investors should therefore ensure they are fully informed in this respect and should, if necessary, consult their own financial advisers. ii. Expenses Apart from the above‐mentioned “taxe d’abonnement”, the Company shall bear the costs specified below, unless otherwise specified in Chapter 22, “Subfunds”: a) All taxes which may be payable on the assets, income and
expenses chargeable to the Company; b) Standard brokerage and bank charges incurred by the Company
through securities transactions in relation to the portfolio (these charges shall be included in the acquisition cost of such securities and deducted from the sale proceeds);
c) A monthly management fee for the Management Company, payable at the end of each month, based on the average daily Net Asset Values of the relevant Share Classes during that month. The management fee may be charged at different rates for individual Subfunds and Share Classes within a Subfund or may be waived in full. Charges incurred by the Management Company in relation to the provision of investment advice shall be paid out of the management fee. Further details of the management fees are included in Chapter 2, “Summary of Share Classes”.
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d) Fees payable to the Custodian Bank, which are charged at rates agreed from time to time with the Company on the basis of usual market rates prevailing in Luxembourg, and which are based on the net assets of the respective Subfund or the value of transferable securities and other assets held or determined as a fixed sum; the fees payable to the Custodian Bank may not exceed the pre‐determined percentage amount although in certain cases the transaction fees and the fees of the Custodian Bank’s correspondents may be charged additionally;
e) Fees payable to the paying agents (in particular, a coupon payment commission), transfer agents and the authorized representatives in the countries of registration;
f) All other charges incurred for sales activities and other services rendered to the Company but not mentioned in the present section; for certain Share Classes these fees may be borne in full or in part by the Management Company;
g) Fees incurred for collateral management in relation to derivative transactions;
h) Expenses, including those for legal advice, which may be incurred by the Company or the Custodian Bank as a result of measures taken on behalf of the Shareholders;
i) The cost of preparing, depositing and publishing the Articles of Incorporation and other documents in respect of the Company, including notifications for registration, Key Investor Information Documents, prospectuses or memoranda for all government authorities and stock exchanges (including local securities dealers’ associations) which are required in connection with the Company or with offering the Shares; the cost of printing and distributing annual and semi‐annual reports for the Shareholders in all required languages, together with the cost of printing and distributing all other reports and documents which are required by the relevant legislation or regulations of the above‐mentioned authorities; the cost of book‐keeping and calculating the daily Net Asset Value, the cost of notifications to Shareholders including the publication of prices for the Shareholders, the fees and costs of the Company’s auditors and legal advisers, and all other similar administrative expenses, and other expenses directly incurred in connection with the offer and sale of Shares, including the cost of printing copies of the aforementioned documents or reports as are used in marketing the Company’s Shares. The cost of advertising may also be charged.
iii. Performance Fee In addition to the aforementioned costs, the Company bears any performance‐related fees (“Performance Fee”) if specified for the respective Subfund in Chapter 2, “Summary of Share Classes” and Chapter 22, “Subfunds”. iv. Volatility Fee In addition to the aforementioned costs, the following additional compensation (“volatility fee”) is payable for individual Subfunds where the overlay strategy, described in Chapter 22, “Subfunds”, is deployed. All recurring fees shall first be deducted from investment income, then from the gains from securities transactions and then from the Company’s assets. Other non‐recurring fees, such as the costs for establishing the Company and (new) Subfunds or Share Classes, may be written off over a period of up to five years. The costs attributable to the individual Subfunds shall be allocated directly to them; otherwise the costs shall be divided among the individual Subfunds in proportion to the Net Asset Value of each Subfund. 10. Accounting Year The accounting year of the Company ends on May 31 of each year. 11. Appropriation of Net Income and Capital Gains Capital‐growth Shares At present, no distribution is envisaged for capital‐growth Share Classes of the Subfunds (see Chapter 5, “Investment in Credit Suisse SICAV One(Lux)”) and the income generated shall be used to increase the Net Asset Value of the Shares after deduction of general costs. However,
within the scope of statutory provisions the Company may distribute from time to time, in whole or in part, ordinary net income and/or realized capital gains as well as all non‐recurring income, after deduction of realized capital losses. Distribution Shares The Board of Directors is entitled to determine the payment of interim dividends and decides to what extent and at what time distributions are to be made from the net investment income attributable to each distributing Share Class of the Subfund in question (see Chapter 5, “Investment in Credit Suisse SICAV One (Lux)”). In addition, gains made on the sale of assets belonging to the Subfund may be and distributed to investors. Further distributions may be made from the Subfund’s assets in order to achieve an appropriate distribution ratio. Appropriation of the annual result as well as other distributions are proposed by the Board of Directors to the annual general meeting and are determined by the latter. Distributions may on no account cause the Company’s capital to fall below the minimum amount prescribed by law. General Information Payment of income distributions shall be made in the manner described in Chapter 5, “Redemption of Shares”. Claims for distributions which are not made within five years shall lapse and the assets involved shall revert to the respective Subfund. 12. Lifetime, Liquidation and Merger The Company and the Subfunds have been established for an unlimited period, unless otherwise specified in Chapter 22, “Subfunds”. However, an extraordinary general meeting of Shareholders may dissolve the Company. To be valid, such a resolution shall require the minimum quorum prescribed by law. If the capital of the Company falls below two‐thirds of the minimum amount, the Board of Directors must submit the question of the Company’s dissolution to a general meeting of Shareholders for which no quorum is prescribed and which may pass a resolution by a simple majority of the Shares represented. If the capital of the Company falls below one quarter of the minimum amount, the Board of Directors must submit the question of the Company’s dissolution to a general meeting of Shareholders. In such cases, no quorum is required; Shareholders holding one quarter of the Shares at the general meeting may pass a resolution to dissolve the Company. The minimum capital required under Luxembourg law is currently EUR 1,250,000. If the Company is liquidated, the liquidation shall be effected in accordance with Luxembourg law, the liquidator(s) named by the general meeting of Shareholders shall dispose of the Company’s assets in the best interests of the Shareholders and the net liquidation proceeds of the Subfunds shall be distributed pro rata to the Shareholders of these Subfunds.. A Subfund may be liquidated and Shares in the Subfund concerned may be subject to compulsory redemption based on: – a resolution passed by the Company’s Board of Directors, as the
Subfund may no longer be appropriately managed within the interests of the Shareholders, or
– a resolution passed by the general meeting of Shareholders of the Subfund in question; the Articles of Incorporation specify that the quorum and majority requirements laid down by Luxembourg law in respect of resolutions to amend the Articles of Incorporation shall apply to such general meetings.
Any resolution passed by the Company’s Board of Directors to dissolve a Subfund shall be published in accordance with Chapter 14, “Information for Shareholders”. The Net Asset Value of the Shares of the relevant Subfund will be paid out on the date of the mandatory redemption of the Shares. Any redemption proceeds that cannot be distributed to the Shareholders within a period of six months shall be deposited with the “Caisse de Consignation” in Luxembourg until the statutory period of limitation has elapsed. In accordance with the definitions and conditions set out in the Law of December 17, 2010, any Subfund may, either as a merging Subfund or as a receiving Subfund, be subject to mergers with another Subfund of the Company or another UCITS, on a domestic or cross‐border basis. The Company itself may also, either as a merging UCITS or as a receiving UCITS be subject to cross‐border and domestic mergers.
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Furthermore, a Subfund may as a receiving Subfund be subject to mergers with another UCI or subfund thereof, on a domestic or cross border basis. In all cases, the Board of Directors of the Company will be competent to decide on the merger. Insofar as a merger requires the approval of the Shareholders pursuant to the provisions of the Law of December 17, 2010, the meeting of Shareholders deciding by simple majority of the votes cast by Shareholders present or represented at the meeting is competent to approve the effective date of such a merger. No quorum requirement will be applicable. Only the approval of the Shareholders of the Subfunds concerned by the merger will be required. Mergers shall be announced at least thirty days in advance in order to enable Shareholders to request the redemption or conversion of their shares. 13. General Meetings The Annual General Meeting (“AGM”) of Shareholders is held in Luxembourg on the second Tuesday of October of each year at 11 a.m. (Central European Time). If this date is not a Banking Day in Luxembourg, the AGM will take place on the next Banking Day. Notices relating to the general meetings will be published in the newspapers mentioned in Chapter 14, “Information for Shareholders”. Meetings of the Shareholders of a particular Subfund may only pass resolutions relating to that Subfund. 14. Information for Shareholders Information about the launch of new Subfunds may be obtained from the Company and the Distributors. The audited annual reports shall be made available to Shareholders free of charge at the registered office of the Company, at the paying agents, information agents and Distributors, within four months after the close of each accounting year. Unaudited semi‐annual reports shall be made available in the same way within two months of the end of the accounting period to which they refer. Other information regarding the Company, as well as the issue and redemption prices of the Shares may be obtained on any Banking Day at the Company’s registered office. All notices to Shareholders, including any information relating to a suspension of the calculation of the Net Asset Value, shall, if required, be published in the “Mémorial”, the “Luxemburger Wort” and in various newspapers in those countries in which the Shares of the Company are admitted for public distribution. The Company may also place announcements in other newspapers and periodicals of its choice. The Net Asset Value shall be published daily on the Internet at www.credit‐suisse.com and in various newspapers. Investors may obtain the Prospectus, the Key Investor Information Document, the latest annual and semi‐annual reports and copies of the Articles of Incorporation free of charge from the registered office of the Company and at www.credit‐suisse.com. The relevant contractual agreements as well as the Management Company’s Articles of Incorporation are available for inspection at the Company’s registered offices during normal business hours. 15. Management Company The Company has designated Credit Suisse Fund Management S.A. to act as its Management Company. Credit Suisse Fund Management S.A. was incorporated in Luxembourg as CSAM Invest Management Company on December 9, 1999 as a joint‐stock company for an indefinite period and is registered at the Luxembourg Trade and Companies Register under no. B 72 925. The Management Company has its registered office in Luxembourg, at 5, rue Jean Monnet. Its capital, on the date of this prospectus, is CHF 250,000, and its equity is CHF 56,300,000. The share capital of the Management Company is held by Credit Suisse Holding Europe (Luxembourg) S.A., Luxembourg. The Management Company is subject to the provisions of Chapter 15 of the Law of December 17, 2010 and also manages other undertakings for collective investment. 16. Investment Managers and Sub‐Investment Manager The Company’s Board of Directors is responsible for investing the Subfunds’ assets. The Board of Directors has appointed the Management Company to implement the Subfunds’ investment policy on a day‐to‐day basis.
In order to implement the policy of each Subfund, the Management Company may delegate, under its permanent supervision and responsibility, the management of the assets of the Subfunds to one or more Investment Managers. Pursuant to the investment management agreement, the Investment Manager has discretion, on a day‐to‐day basis and subject to the overall control and ultimate responsibility of the Management Company, to purchase and sell securities and otherwise to manage the relevant Subfund’s portfolios. The Investment Manager may appoint in accordance with the investment management agreement entered into between the Investment Manager and the Management Company one or more Sub‐Investment Managers for each Subfund to assist it in the management of the individual portfolios. The Investment Manager and Sub‐Investment Manager/s for the respective Subfunds are indicated in Chapter 22, “Subfunds”. The Management Company may at any time appoint an Investment Manager other than the one/s named in Chapter 22, “Subfunds”, or may terminate the relation with any of the Investment Manager/s. The investors of such Subfund will be informed and the Prospectus will be modified accordingly. 17. Custodian Bank Credit Suisse (Luxembourg) S.A., having its registered office at 56, Grand’rue, L‐1660 Luxembourg, assumes the rights and duties of the Custodian Bank as laid down in Articles 33 and 34 of the Law of December 17, 2010. The Custodian Bank is entrusted with the safekeeping of the assets of the Company. It must ensure that the sale, issue, repurchase and cancellation of Shares effected by or on behalf of the Company are carried out in accordance with the Law of December 17, 2010 or the Articles of Incorporation. Moreover, the Custodian Bank shall ensure that in transactions involving the Company’s assets, any consideration is remitted to it within the usual time limits and that the Company’s income is applied in accordance with its Articles of Incorporation. With the consent of the Company, the Custodian Bank may under its responsibility entrust other credit institutions and financial institutions with the custody of securities and other assets of the Company. The Custodian Bank may keep securities in collective safekeeping accounts at depositaries selected by the Custodian Bank with the consent of the Company. The Company and the Custodian Bank may terminate the Custodian Bank agreement at any time in writing by giving three months’ notice. The Company may, however, dismiss the Custodian Bank only if a new custodian bank is appointed within two months to take over the functions and responsibilities of the Custodian Bank. After its dismissal, the Custodian Bank must continue to carry out its functions and responsibilities until such time as the entire assets of the Company have been transferred to the new custodian bank. 18. Central Administration The Management Company has transferred the administration of the Company to Credit Suisse Fund Services (Luxembourg) S.A., a service company registered in Luxembourg, which belongs to Credit Suisse Group AG, and has authorized the latter in turn to delegate tasks wholly or partly to one or more third parties under the supervision and responsibility of the Management Company. As the Central Administration, Credit Suisse Fund Services (Luxembourg) S.A., will assume all administrative duties that arise in connection with the administration of the Company, including the issue and redemption of Shares, valuation of the assets, calculation of the Net Asset Value, accounting and maintenance of the register of Shareholders. 19. Regulatory Disclosure Conflicts of Interest The Management Company, the Investment Managers, the Central Administration, the Custodian Bank and certain Distributors are part of Credit Suisse Group AG (the “Affiliated Person”). The Affiliated Person is a worldwide, full‐service private banking, investment banking, asset management and financial services organization and a major participant in the global financial markets. As such, the Affiliated Person is active in various business activities and may have other direct or indirect interests in the financial markets in which
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the Company invests. The Company will not be entitled to compensation related to such business activities. The Management Company is not prohibited to enter into any transactions with the Affiliated Person, provided that such transactions are carried out as if effected on normal commercial terms negotiated at arm’s length. In such case, in addition to the management fees the Management Company or the Investment Manager earn for managing the Company, they may also have an arrangement with the issuer, dealer and/or distributor of any products entitling them to a share in the revenue from such products that they purchase on behalf of the Company. Moreover, the Management Company or the Investment Managers are not prohibited to purchase or to provide advice to purchase any products on behalf of the Company where the issuer, dealer and/or distributor of such products is part of the Affiliated Person provided that such transactions are carried out in the best interest of the Company as if effected on normal commercial terms negotiated at arm’s length. Entities of the Affiliated Person may act as counterparty and as calculation agent in respect of financial derivative contracts entered into by the Company. Investors should be aware that to the extent the Company trades with the Affiliated Person as dedicated counterparty, the Affiliated Person will make a profit from the price of the financial derivative contract which may not be the best price available in the market, irrespective of the Best Execution principles, as stated further below. Potential conflicts of interest or duties may arise because the Affiliated Person may have invested directly or indirectly in the Company. The Affiliated Person could hold a relatively large proportion of Shares in the Company. Employees and Directors of the Affiliated Person may hold Shares in the Company. Employees of the Affiliated Person are bound by the terms of the respective policy on personal transactions and conflicts of interest applicable to them. In the conduct of its business the Management Company and the Affiliated Person’s policy is to identify, manage and where necessary prohibit any action or transaction that may pose a conflict between the interests of the Affiliated Persons’ various business activities and the Company or its investors. The Affiliated Person, as well as the Management Company strive to manage any conflicts in a manner consistent with the highest standards of integrity and fair dealing. For this purpose, both have implemented procedures that shall ensure that any business activities involving a conflict which may harm the interests of the Company or its investors, are carried out with an appropriate level of independence and that any conflicts are resolved fairly. Such procedures include, but are not limited to the following: – Procedure to prevent or control the exchange of information
between entities of the Affiliated Person, – Procedure to ensure that any voting rights attached to the
Company’s assets are exercised in the sole interests of the Company and its investors,
– Procedures to ensure that any investment activities on behalf of the Company are executed in accordance with the highest ethical standards and in the interests of the Company and its investors,
– Procedure on management of conflicts of interest. Notwithstanding its due care and best effort, there is a risk that the organizational or administrative arrangements made by the Management Company for the management of conflicts of interest are not sufficient to ensure with reasonable confidence, that risks of damage to the interests of the Company or its Shareholders will be prevented. In such case these non‐neutralized conflicts of interest as well as the decisions taken will be reported to investors in an appropriate manner (e.g. in the notes to the financial statements of the Company or on the internet at www.credit‐suisse.com). Complaints Handling Investors are entitled to file complaints free of charge with the Distributor or the Management Company in an official language of their home country. The complaints handling procedure is available free of charge on the internet at “www.credit‐suisse.com”.
Exercise of Voting Rights The Management Company will in principle not exercise voting rights attached to the instruments held in the Subfunds, except if it is specifically mandated by the Company to do so, and in that case, it will only exercise voting rights in certain circumstances where it believes that the exercise of voting rights is particularly important to protect the interests of Shareholders. If mandated by the Company, the decision to exercise voting rights, in particular the determination of the circumstances referred to above, is in the sole discretion of the Management Company. Details of the actions taken will be made available to Shareholders free of charge on their request. Best Execution The Management Company acts in the best interests of the Company when executing investment decisions. For that purpose it takes all reasonable steps to obtain the best possible result for the Company, taking into account price, costs, speed, likelihood of execution and settlement, order size and nature, or any other consideration relevant to the execution of the order (best execution). Where the Investment Managers are permitted to execute transactions, they will be committed contractually to apply equivalent best execution principles, if they are not already subject to equivalent best execution laws and regulations. The best execution policy is available for investors on the internet at “www.credit‐suisse.com”. Investor rights The Company draws the investors’ attention to the fact that any investor will only be able to fully exercise its investor rights directly against the Company, notably the right to participate in general meetings of Shareholders if the investor is registered itself and in its own name in the registered account kept for the Company and its Shareholders by the Company’s Central Administration. In cases where an investor invests in the Company through an intermediary investing into the Company in its own name but on behalf of the investor, it may not always be possible for the investor to exercise certain shareholder rights directly against the Company. Investors are advised to take advice on their rights. Collateral Policy Where the Fund enters into OTC financial derivative and/or efficient portfolio management techniques, collateral may be used to reduce counterparty risk exposure subject to the following conditions: – In accordance with section II b) of CSSF circular 08/356 only the
following types of collateral may be used to reduce counterparty risk exposure: – liquid assets, including cash and short term bank certificates
and money market instruments as defined in Directive 2007/16/EC; a letter of credit or a guarantee at first‐demand given by a first class credit institution not affiliated to the counterparty are considered as equivalent to liquid assets;
– bonds issued or guaranteed by a Member State of the OECD or by their local public authorities or by supranational institutions and undertakings with EU, regional or world‐wide scope;
– shares or units issued by money market funds calculating a daily net asset value and being assigned a rating of AAA or its equivalent;
– shares or units issued by UCITS investing mainly in bonds/shares mentioned in the following two bullet points; – bonds issued or guaranteed by first class issuers offering
an adequate liquidity; – shares admitted to or dealt in on a regulated market of a
Member State of the European Union or on a stock exchange of a Member State of the OECD, on the condition that these shares are included in a main index.
– Any collateral received other than cash must be highly liquid and traded on a regulated market or multilateral trading facility with transparent pricing in order that it can be sold quickly at a price that is close to pre‐sale valuation. Collateral received must also comply with the provisions of Article 48 of the Law of 17 December 2010.
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– Collateral received will be valued on at least a daily basis. Assets that exhibit high price volatility will not be accepted as collateral unless suitably conservative haircuts are in place.
– Collateral received must be of high quality. – The collateral received by the Fund must be issued by an entity
that is independent from the counterparty and is expected not to display a high correlation with the performance of the counterparty.
– Collateral must be sufficiently diversified in terms of country, markets and issuers. The criterion of sufficient diversification with respect to issuer concentration is considered to be respected if a Subfund receives from a counterparty of OTC derivative and/or efficient portfolio management transactions a basket of collateral with a maximum exposure to a given issuer of 20% of its Net Asset Value. When a Subfund is exposed to different counterparties, the different baskets of collateral must be aggregated to calculate the 20% limit of exposure to a single issuer.
– Risks linked to the management of collateral, such as operational and legal risks, will be identified, managed and mitigated in accordance with the Management Company's risk management process concerning the Fund.
– Where there is a title transfer, the collateral received must be held by the Custodian Bank. For other types of collateral arrangement, the collateral can be held by a third party custodian which is subject to prudential supervision, and which is unrelated to the provider of the collateral.
– Collateral received must be capable of being fully enforced by the Fund at any time without reference to or approval from the counterparty.
– Non‐cash collateral received must not be sold, re‐invested or pledged.
Haircut Policy The Company has implemented a haircut policy in respect of each class of assets received as collateral. A haircut is a discount applied to the value of a collateral asset to account for the fact that its valuation, or liquidity profile, may deteriorate over time. The haircut policy takes account of the characteristics of the relevant asset class, the type and credit quality of the issuer of the collateral, the price volatility of the collateral and the results of any stress tests which may be performed in accordance with the collateral management policy. Subject to the framework of agreements in place with the relevant counterparty, which may or may not include minimum transfer amounts, it is the intention of the Company that any collateral received shall have a value, adjusted in light of the haircut policy. 20. Main Parties Company Credit Suisse SICAV One(Lux) 5, rue Jean Monnet, L‐2180 Luxembourg Board of Directors of the Company – Dominique Délèze
Director, Credit Suisse AG, Zurich – Jos Hehenkamp
Director, Credit Suisse AG, Zurich – Rudolf Kömen
Director, Credit Suisse Fund Management S.A., Luxembourg – Guy Reiter
Director, Credit Suisse Fund Management S.A., Luxembourg – Fernand Schaus
Director, Credit Suisse Fund Management S.A., Luxembourg Independent Auditor of the Company PricewaterhouseCoopers, 400 route d’Esch, L‐1014‐Luxembourg Management Company Credit Suisse Fund Management S.A., 5, rue Jean Monnet, L‐2180 Luxembourg
Board of Directors of the Management Company – Luca Diener
Managing Director, Credit Suisse AG, Zurich – Jean‐Paul Gennari
Managing Director, Credit Suisse Fund Services (Luxembourg) S.A., Luxembourg
– Rudolf Kömen Director, Credit Suisse Fund Management S.A., Luxembourg
– Guy Reiter Director, Credit Suisse Fund Management S.A., Luxembourg
– Ferenc Schnitzer Director, Credit Suisse AG, Zurich Custodian Bank Credit Suisse (Luxembourg) S.A., 56, Grand‐Rue, L‐1660 Luxembourg Distributor – Credit Suisse Fund Services (Luxembourg) S.A.,
5, rue Jean Monnet, L‐2180 Luxembourg – Credit Suisse AG, Paradeplatz 8, CH‐8001 Zurich Central Administration Credit Suisse Fund Services (Luxembourg) S.A., 5, rue Jean Monnet, L‐2180 Luxembourg 21. Distribution Distribution of Shares in Switzerland The Representative of the Company in Switzerland is Credit Suisse Funds AG, Sihlcity – Kalandergasse 4, CH‐8070 Zurich. The Paying Agent in Switzerland is Credit Suisse AG, Paradeplatz 8, CH‐8001 Zurich, Credit Suisse AG, Zurich. Shareholders may obtain the Prospectus, the Key Investor Information Document, copies of the Articles of Incorporation and the latest annual and semi‐annual reports free of charge from the Representative in Switzerland. All notices to Shareholders shall be published at least in the “Schweizerisches Handelsamtsblatt” and the electronic platform “www.swissfunddata.ch”. The issue and the redemption prices or the Net Asset Value together with a footnote “excluding commissions” shall be published on each valuation day on the electronic platform “www.swissfunddata.ch” as a minimum. With respect to Shares distributed in Switzerland and out of Switzerland, the place of performance and jurisdiction is deemed to be the registered office of the Representative in Switzerland. In connection with distribution in Switzerland, reimbursements are payable to the following qualified investors holding Shares on behalf of third parties for business purposes: life insurance companies, pension funds and other benefits institutions, investment foundations, Swiss fund managers, foreign fund managers and investment fund companies, and investment companies. Moreover, in connection with distribution in Switzerland, distribution fees are payable to the following distributors and distribution partners: authorized distributors within the meaning of Art. 19 para. 1 CISA, distributors granted exemption from, the duty to obtain authorization within the meaning of Art. 19 para. 4 CISA and Art. 8 CISO, distribution partners that place the Shares exclusively with institutional investors with a professional treasury unit, and distribution partners that place the Shares exclusively on the basis of a written discretionary asset management agreement. Distribution of Shares in Germany No notification pursuant to Sec. 310 of the German Capital Investment Code (Kapitalanlagegesetzbuch) has been filed for the following Subfunds and the Shares in these Subfunds may not be marketed to investors in the Federal Republic of Germany:
Credit Suisse SICAV One (Lux) Liquid Event Driven Credit Suisse SICAV One (Lux) Liquid Global Strategies Credit Suisse SICAV One (Lux) Liquid Long/Short
Any continuing authorisation pursuant to Sec. 355(4) of the German Capital Investment Code (Kapitalanlagegesetzbuch) for activities that did not qualify as public marketing under the German Investment Act (Investmentgesetz) remains unaffected.
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All Share Classes are only available in uncertificated registered form and will exist exclusively as book entries. No printed individual certificates were issued in respect of the Shares. Applications for the redemption and conversion of Shares which may be distributed in Germany may be submitted to the Central Administration (Credit Suisse Fund Services (Luxembourg) S.A., 5, rue Jean Monnet 2180 Luxemburg). All payments which are intended for Shareholders (including proceeds of the redemption of Shares and any disbursements or other payments) may be channelled, at their request, via the Central Administration. The Central Administration will disburse its payments to the registered Shareholders domiciled in Germany. The registered Shareholders will be responsible for the further distribution of the payments to the end investors (if any). Credit Suisse (Deutschland) AG, Junghofstrasse 16, D‐60311 Frankfurt am Main acts as information agent for the Company in Germany (the “German Information Agent”). Investors may obtain the Prospectus, the Key Investor Information Documents, the Articles of Incorporation, the audited annual and the unaudited semi‐annual reports free of charge in paper form from the Information Agent. The issue and redemption prices and other information in relation to the Company (including the Net Asset Value), together with the additional information specified in Chapter 14, “Information for Shareholders”, may be obtained free of charge from the German Information Agent or may be inspected there on each banking day. Any required notices to Shareholders and the issue and redemption prices shall be published in the “Börsen‐Zeitung” as a minimum. The Company’s Board of Directors may also place announcements in other newspapers and periodicals of its choice. Moreover, registered investors will be notified by way of permanent data media in the following instances: suspension of the redemption of Shares; liquidation of the Company or a Subfund; changes to the Articles of Incorporation that are inconsistent with the existing investment principles, affect significant investor rights, or relate to remuneration or compensation of expenses (stating the background and the investors’ rights), the merger of a Subfund or the possible conversion of a Subfund into a feeder fund. The Board of Directors is required, if requested, to supply the German tax authorities with evidence demonstrating, for example, the correctness of the declared basis for taxation. The calculation of this basis may be interpreted in different ways, and it is not possible to guarantee that the German tax authorities will accept the Board’s calculation method in every significant respect. Moreover, investors must be aware that, in the event that past errors come to light, corrections may not be generally made with retroactive effect but in principle are only applied to the current financial year. Consequently, such corrections may adversely affect or benefit those investors who receive a distribution or to whom capital growth accrues in the current financial year. Distribution of Shares in Austria UniCredit Bank Austria AG, Schottengasse 6–8, A‐1010 Vienna, is the Paying Agent for Austria (the “Austrian Paying Agent”). All payments intended for Shareholders may be channeled at their request via the Austrian Paying Agent and/or upon request may be paid in cash by the Austrian Paying Agent. Applications for the redemption of Shares may be lodged with the Austrian Paying Agent. Hard copies of the Prospectus, the Key Investor Information Document, the Articles of Incorporation, the audited annual report as well as the unaudited semi‐annual report, together with the issue and redemption prices are available free of charge from the Austrian Paying Agent. The Net Asset Value is published daily on the Internet at www.credit‐suisse.com and may also published in various newspapers. Any required notices to Unitholders shall be published in the “Wiener Zeitung” as a minimum. The Management Company may also place announcements in other newspapers and periodicals of its choice. Distribution of Shares in Liechtenstein The Paying Agent and Representative in Liechtenstein is LGT Bank in Liechtenstein Aktiengesellschaft, Herrengasse 12, FL‐9490 Vaduz. Announcements to investors concerning amendments to the Articles of Incorporation, change of the Management Company or the Custodian Bank as well as the liquidation of the Company are published in the “Liechtensteiner Vaterland”.
Prices are published on the electronic platform “www.swissfunddata.ch” each day on which Shares are issued and redeemed. At least twice a month, prices are published in the “Liechtensteiner Vaterland”. Distribution of Shares in the United Kingdom Subject to the section below, this Prospectus is available for general distribution in, from or into the United Kingdom because the Company is a recognized collective investment scheme pursuant to section 264 of the Financial Services and Markets Act 2000. It should be noted, however, that only the Subfunds: Credit Suisse SICAV One (Lux) Equity Global Emerging Market Property; Credit Suisse SICAV One (Lux) Small and Mid Cap Alpha Long/Short; Credit Suisse SICAV One (Lux) Global Convertibles and Credit Suisse SICAV One (Lux) Equity Global Emerging Marktes have so far been notified to the former United Kingdom Financial Services Authority (FSA). Consequently, the other Subfunds are not generally available to investors in the United Kingdom (unless the exception applicable to the distribution of unregulated collective investment schemes is applied). In this context, investors are informed that the FSA ceased to exist from 1 April 2013 onwards. Since 1 April 2013, the responsible authority in respect of regulation of conduct in financial markets is the Financial Conduct Authority (FCA). The Company’s contact in the United Kingdom (“Facilities Agent”) is Credit Suisse Asset Management Limited, London. Applications for the redemption or exchange of the Company’s shares may be submitted to the Facilities Agent. Any correspondence with the Facilities Agent should be directed to Credit Suisse Asset Management Limited, One Cabot Square, London E14 4QJ, United Kingdom. The Prospectus, the Key Investor Information Document, and copies of the Articles of Incorporation, audited annual and semi‐annual report, in addition to issuing, redemption and exchange prices, are available free of charge from the Facilities Agent. The Management Company will provide for each United Kingdom investor, for each accounting period, information about the Subfunds’ income on the website www.credit‐suisse.com within six months of the first day after the relevant accounting period, enabling them to complete their United Kingdom tax returns. Investors without access to the internet may obtain this information directly (by post or telephone) from the customer service officer. Prices are published daily at www.credit‐suisse.com. All communications to the Shareholders are notified to the FCA and the Shareholders in compliance with Luxembourg law. The Company’s Board of Directors may also place announcements in other newspapers and periodicals of its choice. Investors can obtain information on the aforementioned Subfunds accessible to investors in the United Kingdom, plus information on the taxation of the investments, in the Supplementary Prospectus appended to this prospectus. Investors in the United Kingdom are hereby notified that the rules issued by the former FSA in the context of the Financial Services and Markets Act 2000 are not applicable to the Company’s investment activities. In particular, the investor protection rules for private investors (e.g. those granting investors a right of revocation or the right to withdraw from certain investment contracts) are not applicable; nor do the provisions of the Financial Services Compensation Scheme apply to an investment in the Company.
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22. Subfunds Credit Suisse SICAV One (Lux) CommodityAllocation Investment Objective The objective of the Subfund is to achieve the highest possible return in US dollars (Reference Currency), primarily by participating in the development of the international markets (commodity, product, natural resources and precious metals segments) while taking due account of the principle of risk diversification, the security of the capital invested, and the liquidity of the assets. Investment Principles In keeping with the provisions set forth in Chapter 6, “Investment Restrictions”, the Subfund invests at least two‐thirds of its total assets in a broadly diversified portfolio of actively and passively managed investment funds (“Target Funds”), structured products and derivatives, and in all the investment instruments listed in Chapter 6, “Investment Restrictions”, section 1, with a dynamically managed focus on the commodity, product, natural resources and precious metals segments. The investment process is based on a dynamic multi‐asset‐class approach. Depending on the market assessment, this may at any time result in a concentration of investment classes (e.g. fixed‐income instruments, equities, derivatives); the weightings of the individual investment classes may also vary considerably. If the focus on commodities, products, natural resources or precious metals is to be achieved via derivatives, this must be done using derivatives which have a financial index as their underlying. Investment Instruments To achieve its investment objective, the Subfund may – subject to the aforementioned investment principles – use any of the instruments listed in section 1 of Chapter 6, “Investment Restrictions”; these may include, but not be limited to, the instruments specified below: Equities or equity‐type instruments: up to 30% of the Subfund’s net assets; Bonds, notes, similar fixed‐ or variable‐income instruments (including convertible bonds, convertible notes, warrant bonds and warrants on securities as well as warrants): up to 30% of the Subfund’s net assets; Target Funds Contrary to what is stated in section 5 of Chapter 6, “Investment Restrictions”, the Subfund may invest up to 100% of its net assets in shares or units of other UCITSs and/or other UCIs pursuant to section 1) paragraph e) of Chapter 6, “Investment Restrictions”. Structured products The Subfund may invest up to 100% of its net assets in structured products (certificates, notes) that are sufficiently liquid, are issued by first‐class banks (or by issuers that offer investor protection comparable to that provided by first‐class banks), and facilitate exposure to the commodity, products, natural resources or precious metals segments and to currencies. These structured products must qualify as securities pursuant to Art. 41 of the Law of December 17, 2010. Moreover, these products must be valued regularly and transparently on the basis of independent sources. Unless these structured products contain embedded derivatives pursuant to Art. 42 (3) of the Law of December 17, 2010, such products must not entail any leverage. The derivatives embedded in such structured products may only be based on investment instruments specified in Chapter 6, section 1. As well as satisfying the regulations on risk spreading, the asset baskets and underlying indices must be sufficiently diversified. Derivatives The Subfund may invest up to 100% of its net assets in derivatives in accordance with section 1 g) of Chapter 6, “Investment Restrictions”, subject to observance of the investment restrictions stated in said Chapter. To cover the obligations arising from the use of derivatives, the Subfund makes continual use of bank deposits, money market instruments, liquid debt securities or other short‐term liquidity.
The Subfund may engage in active currency allocation using forward contracts, futures, options, contracts of difference and swap contracts. Derivatives may also be used in the interest of the efficient management of the portfolio or for hedging purposes, provided the limits set out in Chapter 6, “Investment Restrictions”, are observed. These instruments may include, but are not limited to, futures, options, forward contracts, contracts for difference and swap contracts. If the underlyings of the derivatives are financial indices, such indices must be chosen in accordance with Art. 9 of the Grand‐Ducal Decree of February 8, 2008. As a derogation to the before‐mentioned principle and provided such transactions are only used for risk‐diversification purposes, the Subfund may also invest in structured products or derivative instruments facilitating exposure to single commodity indices (“SCIs”). SCIs are indices based on financial derivative instruments on a single commodity. While the composition of such indices does not comply with the diversification rules set out in section 4)g) of Chapter 6 “Investment Restrictions”, the exposure of the Subfund to the SCI shall at any time comply with the 5/10/40% rule specified in section 4)a) of Chapter 6 “Investment Restrictions”. According to the ESMA Guidelines 2012/832, an investment in commodity indices that do not consist of different commodities is not authorised. Until 18th February 2014, the Subfund must align its investments with the guidelines.The counterparties to any OTC financial derivative transactions, such as swap contracts and contracts for difference, are first class financial institutions specialised in this type of transaction. For reasons of investment tactics, the Subfund may at any time invest up to 30% of its net assets in liquid instruments as per section 2 of Chapter 6, “Investment Restrictions”. Global Exposure The global exposure of the Subfund will be calculated on the basis of the commitment approach. Risk Information Investors should note that investments in Target Funds may incur the same costs both at the Subfund level and at the level of the Target Funds. Furthermore, the value of the units in the Target Funds may be affected by currency fluctuations, currency exchange transactions, tax regulations (including the levying of withholding tax) and any other economic or political factors or changes in the countries in which the Target Fund is invested, along with the aforementioned risks associated with exposure to the emerging markets. The investment of the Subfund’s assets in units or shares of Target Funds entails a risk that the redemption of the units or shares may be subject to restrictions, with the consequence that such investments may be less liquid than other types of investment. In relation to the Subfund’s investment universe, investors should note that there are no restrictions in terms of either the size of issuers or of the issuers’ credit ratings; consequently, investors should refer to the corresponding risks specified in Chapter 7, “Risk Factors”. Potential investors should note that, in addition to the risks specified in Chapter 7, “Risk Factors”, the prospective returns generated by securities of issuers in the emerging markets are generally more volatile than those generated by similar securities issued by equivalent issuers in the developed, industrialized countries. Emerging countries and developing markets are defined as countries which are not classified by the World Bank as high income countries. In addition, high income countries which are included in an emerging market financial index of a leading service provider may also be considered as emerging countries and developing markets if deemed appropriate by the Management Company in the context of a Sub‐Fund's investment universe. Since this Subfund may invest in debt instruments in the non‐investment grade sector, the underlying debt instruments may present a greater risk in terms of downgrading or may exhibit a greater default risk than debt instruments of first‐class issuers. The higher return should be viewed as compensation for the greater degree of risk attached to the underlying debt instruments and the Subfund’s higher volatility. Investments in commodity, product, natural resources or precious metal indices differ from traditional investments and entail additional risk potential. The assets of the Subfund are subject to the usual fluctuations experienced by the sector in question. The value of the commodities,
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products, natural resources or precious metals is affected, for example, by fluctuations in the commodity markets, by natural or medical emergencies, by economic, political or regulatory developments around the world, and – in the case of derivatives and structured products – also by changes in interest rates (yields). The volatility of commodity indices and historical financial market scenarios are not a guarantee of future trends. The risks entailed in alternative investments are considerable and increase the potential for losses accordingly. The Company, however, will seek to minimize such risks by a strict selection of investments acquired and by an appropriate spreading of risk. Moreover, the risks entered into by the Subfund remain limited due to the decision to forgo any leverage effect. The use of derivatives also involves specific risks. Accordingly, potential investors are referred in particular to the risks associated with derivatives set out in Chapter 7, “Risk Factors”. In addition, potential investors should note that various money flow risks arising from adjustments necessitated by subscriptions and redemptions as well as the fact that the counterparty risk cannot be eliminated completely in derivative strategies may reduce the targeted return. . However, when it has been considered as appropriate, the Subfund will endeavour to mitigate this risk by the receipt of financial collateral given as guarantees or minimize this risk by taking various diversification measures. The Subfund’s investments are subject to price fluctuations. Historical financial market scenarios are not a guarantee of future trends. There can therefore be no guarantee that the investment objective will be met. Investor Profile This Subfund is suitable for investors who are interested in achieving capital growth by way of highly dynamic asset allocation in the area of commodities, natural resources and precious metals, and have a long‐term investment horizon. Costs associated with Investments in Target Funds The Management Company shall be entitled to a fee in return for managing the Subfund. The amount, calculation and payment of this fee for the Subfund is set out in Chapter 2, “Summary of Share Classes”. Besides the expenses incurred by the Management Company in managing the Subfunds, a management fee shall be indirectly deducted from the assets of each Subfund in respect of the Target Funds contained therein. Contrary to what is stated in section 5 of Chapter 6, “Investment Restrictions”, the Management Company may also charge a management fee for investments in Target Funds considered to be associated funds in the aforementioned provision. The cumulative management fee at Subfund and Target Fund level shall not exceed 4.00%. Investment Manager The Management Company has appointed Credit Suisse AG, Zurich, as Investment Manager to assist with the management of this Subfund. Subscription, Redemption and Conversion of Shares Subscription, redemption and conversion applications must be received by the Central Administration or a Distributor by 3 p.m. (Central European Time) two Banking Days prior to the Valuation Day (as defined above). Subscription, redemption and conversion applications received after this cutoff point shall be deemed to have been duly received on the Banking Day prior to the next Valuation Day. Payment of the issue price must be effected within two Banking Days after the Valuation Day on which the issue price of the Shares was determined. Payment of the redemption price of the Shares shall be made within two Banking Days following calculation of this price. Adjustment of the Net Asset Value (Single Swing Pricing) The Net Asset Value calculated in accordance with Chapter 8, “Net Asset Value” will be increased by up to a maximum of 2% per Share in the event of a net surplus of subscription applications or reduced by up to a maxi‐mum of 2% per Share in the event of a net surplus of redemption applications in respect of the applications received on the respective Valuation Day.
Under exceptional circumstances the Company may, in the interest of Shareholders, decide to increase the maximum swing factor indicated above. In such case the Company would inform the investors in accordance with Chapter 14, “Information for Shareholders”. Credit Suisse SICAV One (Lux) Equity Eurozone Investment Objective The objective of the Subfund is to achieve the highest possible return in euros (Reference Currency), while taking due account of the principle of risk diversification, the security of the capital invested, and the liquidity of the assets. Investment Principles At least two‐thirds of the Subfund’s assets are invested in equities and equity‐type securities (American depository receipts [ADRs], global depository receipts [GDRs], profit‐sharing certificates, dividend rights certificates, participation certificates, etc.) of companies which are domiciled in or carry out the bulk of their business activities in countries of the eurozone. In addition, the Subfund may also invest in emerging countries and developing markets or other countries. For hedging purposes and in the interest of the efficient management of the portfolio, the aforementioned investments may also be effected by way of derivatives, provided the limits set out in Chapter 6, “Investment Restrictions” are observed. These derivatives include futures and options on equities, equity‐like securities and equity indices of companies which are domiciled in or carry out the bulk of their business activities in the eurozone. In addition, the Subfund may – subject to the investment principles set out above – invest up to 30% of its net assets in structured products (certificates, notes) on equities, equity‐type securities, equity baskets and equity indices that are sufficiently liquid and are issued by first‐class banks (or by issuers that offer investor protection comparable to that provided by first‐class banks). These structured products must qualify as securities pursuant to Art. 41 of the Law of December 17, 2010. Moreover, these structured products must be valued regularly and transparently on the basis of independent sources. Structured products must not entail any leverage effect. As well as satisfying the regulations on risk spreading, the equity baskets and equity indices must be sufficiently diversified. In addition, to enhance the return and minimize risk, the Subfund may pursue an overlay strategy (covered call strategy) comprising the sale of covered call options (short positions) on the underlying share portfolio (long position). The maximum nominal value of the short call positions may not exceed 100% of the Subfund’s net assets. Furthermore, to hedge currency risks and to gear its assets to one or more other currencies, the Subfund may enter into forward foreign exchange and other currency derivatives in accordance with section 3 of Chapter 6, “Investment Restrictions”. The indices on which such derivatives are based shall be chosen in accordance with Art. 9 of the Grand‐Ducal Decree of February 8, 2008. Liquid assets held by this Subfund in the form of sight and time deposits, together with debt instruments which generate interest income within the meaning of EU directive 2003/48/EC and UCITS which themselves invest in short‐term time deposits and money market instruments may not exceed 25% of the Subfund’s net assets. Global Exposure The global exposure of the Subfund will be calculated on the basis of the commitment approach. Risk Information Certain European countries are considered to be emerging markets. The probable returns on securities of issuers from emerging countries (emerging markets) are generally higher than the returns on similar securities of equivalent issuers from countries not classed as emerging (i.e. developed countries). The markets in emerging countries are much less liquid than the developed equity markets. Moreover, in the past, these markets have experienced higher volatility than the developed markets.
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
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Potential investors should be aware that, due to the political and economic situation in emerging countries, investments in this Subfund entail a greater degree of risk, which could in turn reduce the return on the Subfund’s assets. Investments in this Subfund should only be made on a long‐term basis. Investments in emerging markets are exposed to the following risks (among others): less effective public supervision, accounting and auditing methods and standards which do not match the requirements of Western legislation, possible restrictions on repatriation of the capital invested, counterparty risk in respect of individual transactions, market volatility, and insufficient liquidity affecting the Subfund’s investments. It must also be borne in mind that companies are selected regardless of their market capitalization (micro, small, mid, large caps) or sector. This may lead to a concentration in terms of market segments or sectors. A fluctuation in the exchange rate of local currencies in relation to the euro will bring about a corresponding, simultaneous fluctuation in the net assets of the Subfund as expressed in the euro, while local currencies may be subject to foreign exchange restrictions. Further information on the risks of equity investments and investments in emerging markets is set out in Chapter 7, “Risk Factors”. Volatility Fee A volatility fee will be charged for the use of the overlay strategy. The volatility fee will be billed monthly and calculated on the basis of an annual fee of 0.5% of the total value of the Subfund’s assets used for the overlay strategy on the last calendar day of any given month. Investor Profile This Subfund is suitable for investors wishing to participate in the development of the equity markets in the eurozone. Investors will be looking for a diversified exposure to companies in this economic area. As the investments are focused on equities – which can be subject to wide fluctuations in value – investors should have a long‐term investment horizon. Investment Manager The Management Company has appointed Credit Suisse AG, Zurich, as Investment Manager to assist with the management of this Subfund. Adjustment of the Net Asset Value (Single Swing Pricing) The Net Asset Value calculated in accordance with Chapter 8, “Net Asset Value” will be increased by up to a maximum of 2% per Share in the event of a net surplus of subscription applications or reduced by up to a maxi‐mum of 2% per Share in the event of a net surplus of redemption applications in respect of the applications received on the respective Valuation Day. Under exceptional circumstances the Company may, in the interest of Shareholders, decide to increase the maximum swing factor indicated above. In such case the Company would inform the investors in accordance with Chapter 14, “Information for Shareholders”. Credit Suisse SICAV One (Lux) Equity Global Investment Objective The objective of the Subfund is to achieve the highest possible return in US dollars (Reference Currency), while taking due account of the principle of risk diversification, the security of the capital invested, and the liquidity of the invested assets. Investment Principles At least two‐thirds of the Subfund’s assets are invested in equities and other equity‐type securities and rights (American depository receipts [ADRs] and global depository receipts) of companies worldwide. The Subfund may also invest up to 40% in emerging countries and developing markets. In addition, the Subfund may in particular invest up to one‐third of its total assets, on a worldwide basis and in any currency, in sight deposits or other deposits callable as per section 1) f) of Chapter 6 “Investment Restrictions”, or in money market instruments as per section 1) h) Chapter 6 “Investment Restrictions”.
For hedging purposes and in the interest of the efficient management of the portfolio, the aforementioned investments may also be effected by way of derivatives, such as futures and options on equities, equity‐type securities and equity indices of companies, provided the limits set out in Chapter 6, “Investment Restrictions”, are observed. In addition, the Subfund may – subject to the investment principles set out above – invest up to 30% in structured products (certificates, notes) on equities, equity‐type securities, equity baskets and equity indices of companies worldwide that are sufficiently liquid and issued by first‐class banks (or by issuers that offer investor protection comparable to that provided by first‐class banks). These structured products must qualify as securities pursuant to Art. 41 of the Law of December 17, 2010. These structured products must be valued regularly and transparently on the basis of independent sources. Structured products must not entail any leverage effect. As well as satisfying the regulations on risk spreading, the equity baskets and equity indices must be sufficiently diversified. Furthermore, to hedge currency risks and to gear its assets to one or more other currencies, the Subfund may enter into forward foreign exchange and other currency derivatives in accordance with section 3 of Chapter 6, “Investment Restrictions”. The indices on which such derivatives are based shall be chosen in accordance with Art. 9 of the Grand‐Ducal Decree of February 8, 2008. Liquid assets held by this Subfund in the form of sight and time deposits, together with debt instruments which generate interest income within the meaning of EU directive 2003/48/EC and UCITS which themselves invest in short‐term time deposits and money market instruments may not exceed 25% of the Subfund’s net assets. Global Exposure The global exposure of the Subfund will be calculated on the basis of the commitment approach. Risk Information The probable returns on securities of issuers from emerging countries (emerging markets) are generally higher than the returns on similar securities of equivalent issuers from countries not classed as emerging (i.e. developed countries). Emerging countries and developing markets are defined as countries which are not classified by the World Bank as high income countries. In addition, high income countries which are included in a emerging market financial index of a leading service provider may also be considered as emerging countries and developing markets if deemed appropriate by the Management Company in the context of a Sub‐Fund's investment universe. The markets in emerging countries are much less liquid than the developed equity markets. Moreover, in the past, these markets have experienced higher volatility than the developed markets. Potential investors should be aware that, due to the political and economic situation in emerging countries, investments in this Subfund entail a greater degree of risk, which could in turn reduce the return on the Subfund’s assets. Investments in these Subfunds should only be made on a long‐term basis. The investments of this Subfund are exposed to the following risks (among others): less effective public supervision, accounting and auditing methods and standards which do not match the requirements of Western legislation, possible restrictions on repatriation of the capital invested, counterparty risk in respect of individual transactions, market volatility, and insufficient liquidity affecting the Subfund’s investments. It must also be borne in mind that companies are selected regardless of their market capitalization (micro, small, mid, large caps) or sector. This may lead to a concentration in terms of market segments or sectors. A fluctuation in the exchange rate of local currencies in the emerging countries in relation to the Reference Currency will bring about a corresponding, simultaneous fluctuation in the net assets of the Subfund as expressed in the Reference Currency, while local currencies in emerging countries may be subject to foreign exchange restrictions. Investors should note in particular that dividends generated by the Company’s investments for the account of the Subfund may be subject to non‐recoverable withholding tax. This could impair the Subfund’s income. Furthermore, capital gains generated by the Company’s investments for the account of the Subfund may also be subject to capital gains tax and to repatriation limitations. Further information on the risks of equity investments and investments in emerging markets is set out in Chapter 7, “Risk Factors”.
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
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Investor Profile This Subfund is suitable for investors who would like to participate in the economic development of the global equity market. The companies are selected regardless of their market capitalization (micro, small, mid, large caps) or affiliation to a particular geographical region or sector. This may lead to a concentration in geographical and/or sector terms. As the investments are focused on equities – which can be subject to wide fluctuations in value – investors should have a medium to long investment horizon. Investment Manager The Management Company has appointed Credit Suisse AG, Zurich, as Investment Manager to assist with the management of this Subfund. The investment management agreement between the Subfund and the Investment Manager provides the right for the Investment Manager to effect transactions with or through the agency of a third person with whom the Investment Manager has a soft commission agreement. The services to be rendered by such a third party must be in direct relation to the activities of the Investment Manager and must be in the interest of the Subfund. The soft commissions shall not be payable to physical persons and the soft commissions and related party transactions shall be disclosed in the periodic reports of the Company. A soft commission is any economic benefit (other than clearing and execution services) provided by a broker/dealer to an investment manager in connection with the payment of commissions on transactions carried out with that broker/dealer. Adjustment of the Net Asset Value (Single Swing Pricing) The Net Asset Value calculated in accordance with Chapter 8, “Net Asset Value” will be increased by up to a maximum of 2% per Share in the event of a net surplus of subscription applications or reduced by up to a maxi‐mum of 2% per Share in the event of a net surplus of redemption applications in respect of the applications received on the respective Valuation Day. Under exceptional circumstances the Company may, in the interest of Shareholders, decide to increase the maximum swing factor indicated above. In such case the Company would inform the investors in accordance with Chapter 14, “Information for Shareholders”. Credit Suisse SICAV One (Lux) Equity Global Emerging Markets Investment Objective The objective of the Subfund is to achieve the highest possible return in US dollars (Reference Currency), while taking due account of the principle of risk diversification, the security of the capital invested, and the liquidity of the invested assets. Investment Principles At least two‐thirds of the Subfund’s assets are invested in equities and equity‐type securities (American depository receipts [ADRs], global depository receipts [GDRs], profit‐sharing certificates, dividend rights certificates, participation certificates, etc.) of companies which are domiciled in or carry out the bulk of their business activities in emerging countries worldwide. In this context, emerging countries and developing markets are defined as countries which are not classified by the World Bank as high income countries. In addition, high income countries which are included in an emerging market financial index of a leading service provider may also be considered as emerging countries and developing markets if deemed appropriate by the Management Company in the context of a Sub‐Fund's investment universe. In addition, the Subfund may in particular invest up to one‐third of its total assets, on a worldwide basis and in any currency, in sight deposits or other deposits callable as per section 1) f) of Chapter 6 “Investment Restrictions”, or in money market instruments as per section 1) h) Chapter 6 “Investment Restrictions”, or in other liquid instruments. For hedging purposes and in the interest of the efficient management of the portfolio, the aforementioned investments may also be effected by way of derivatives, such as futures and options on equities, equity‐type securities and equity indices of companies which are domiciled in or carry
out the bulk of their business activities in emerging countries worldwide, provided the limits set out in Chapter 6, “Investment Restrictions”, are observed. In addition, the Subfund may – subject to the investment principles set out above – invest in structured products (certificates, notes) on equities, equity‐type securities, equity baskets and equity indices of companies in emerging countries worldwide that are sufficiently liquid and issued by first‐class banks (or by issuers that offer investor protection comparable to that provided by first‐class banks). These structured products must qualify as securities pursuant to Art. 41 of the Law of December 17, 2010. These structured products must be valued regularly and transparently on the basis of independent sources. Structured products must not entail any leverage effect. As well as satisfying the regulations on risk spreading, the equity baskets and equity indices must be sufficiently diversified. To manage the volatility in the securities portfolio, or to hedge the portfolio, the Subfund may also make use of financial derivatives or certificates (subject to the terms set out in the section above) based on a volatility index that satisfies the requirements of section 4 g) of Chapter 6 “Investment Restrictions”. Furthermore, to hedge currency risks and to gear its assets to one or more other currencies, the Subfund may enter into forward foreign exchange and other currency derivatives in accordance with section 3 of Chapter 6, “Investment Restrictions”. The indices on which such derivatives are based shall be chosen in accordance with Art. 9 of the Grand‐Ducal Decree of February 8, 2008. Liquid assets held by this Subfund in the form of sight and time deposits, together with debt instruments which generate interest income within the meaning of EU directive 2003/48/EC and UCITS which themselves invest in short‐term time deposits and money market instruments may not exceed 25% of the Subfund’s net assets. Global Exposure The global exposure of the Subfund will be calculated on the basis of the commitment approach. Risk Information The probable returns on securities of issuers from emerging countries (emerging markets) are generally higher than the returns on similar securities of equivalent issuers from countries not classed as emerging (i.e. developed countries). Emerging countries and developing markets are defined as countries which are not classified by the World Bank as high income countries. In addition, high income countries which are included in a emerging market financial index of a leading service provider may also be considered as emerging countries and developing markets if deemed appropriate by the Management Company in the context of a Sub‐Fund's investment universe. The markets in emerging countries are much less liquid than the developed equity markets. Moreover, in the past, these markets have experienced higher volatility than the developed markets. Potential investors should be aware that, due to the political and economic situation in emerging countries, investments in this Subfund entail a greater degree of risk, which could in turn reduce the return on the Subfund’s assets. Investments in these Subfunds should only be made on a long‐term basis. The investments of this Subfund are exposed to the following risks (among others): less effective public supervision, accounting and auditing methods and standards which do not match the requirements of Western legislation, possible restrictions on repatriation of the capital invested, counterparty risk in respect of individual transactions, market volatility, and insufficient liquidity affecting the Subfund’s investments. It must also be borne in mind that companies are selected regardless of their market capitalization (micro, small, mid, large caps) or sector. This may lead to a concentration in terms of market segments or sectors. A fluctuation in the exchange rate of local currencies in the emerging countries in relation to the Reference Currency will bring about a corresponding, simultaneous fluctuation in the net assets of the Subfund as expressed in the Reference Currency, while local currencies in emerging countries may be subject to foreign exchange restrictions. Investors should note in particular that dividends generated by the Company’s investments for the account of the Subfund may be subject to non‐recoverable withholding tax. This could impair the Subfund’s income. Furthermore, capital gains generated by the
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Company’s investments for the account of the Subfund may also be subject to capital gains tax and to repatriation limitations. Further information on the risks of equity investments and investments in emerging markets is set out in Chapter 7, “Risk Factors”. Investor Profile This Subfund is suitable for investors wishing to participate in the development of equity markets in emerging countries worldwide. Investors will be looking for a diversified exposure to companies in this economic area. As the investments are focused on equities – which can be subject to wide fluctuations in value – investors should have a medium to long investment horizon. Investment Manager The Management Company has appointed Credit Suisse Asset Management LLC, One Madison Avenue, New York, NY 10010, USA, as Investment Manager to assist with the management of this Subfund. The investment management agreement between the Subfund and the Investment Manager provides the right for the Investment Manager to effect transactions with or through the agency of a third person with whom the Investment Manager has a soft commission agreement. The services to be rendered by such a third party must be in direct relation to the activities of the Investment Manager and must be in the interest of the Subfund. The soft commissions shall not be payable to physical persons and the soft commissions and related party transactions shall be disclosed in the periodic reports of the Company. A soft commission is any economic benefit (other than clearing and execution services) provided by a broker/dealer to an investment manager in connection with the payment of commissions on transactions carried out with that broker/dealer. Subscription, Redemption and Conversion of Shares Subscription, redemption and conversion applications must be received by the Central Administration or a Distributor by 3 p.m. (Central European Time) two Banking Days prior to the Valuation Day (as defined above). Subscription, redemption and conversion applications received after this cutoff point shall be deemed to have been duly received on the Banking Day prior to the next Valuation Day. Adjustment of the Net Asset Value (Single Swing Pricing) The Net Asset Value calculated in accordance with Chapter 8, “Net Asset Value” will be increased by up to a maximum of 2% per Share in the event of a net surplus of subscription applications or reduced by up to a maxi‐mum of 2% per Share in the event of a net surplus of redemption applications in respect of the applications received on the respective Valuation Day. Under exceptional circumstances the Company may, in the interest of Shareholders, decide to increase the maximum swing factor indicated above. In such case the Company would inform the investors in accordance with Chapter 14, “Information for Shareholders”. Credit Suisse SICAV One (Lux) Equity Global Emerging Market Property Investment Objective The objective of the Subfund is to achieve the highest possible return in US dollars (Reference Currency), while taking due account of the principle of risk diversification, the security of the capital invested, and the liquidity of the assets. Investment Principles At least two‐thirds of the Subfund’s assets are invested worldwide in equities and equity‐type securities (American depository receipts [ADRs], global depository receipts [GDRs], profit‐sharing certificates, dividend rights certificates, participation certificates, etc.) of real estate companies and closed‐end real estate investment trusts (REITs) which are domiciled in or carry out the bulk of their business activities in emerging countries. In this context, emerging countries and developing markets are defined as countries which are not classified by the World
Bank as high income countries. In addition, high income countries which are included in an emerging market financial index of a leading service provider may also be considered as emerging countries and developing markets if deemed appropriate by the Management Company in the context of a Sub‐Fund's investment universe. “Real estate companies” typically include those companies that are engaged in the planning, construction, ownership, management or sale of residential, commercial or industrial real estate. Furthermore, the Subfund may invest in companies which obtain the majority of their revenues by financing the above activities. The Subfund may additionally invest up to 30% of its net assets, on a worldwide basis and in any currency, in equities and equity‐type securities of companies whose activities are closely connected with real estate, such as manufacturers and distributors of goods for the construction industry. For hedging purposes and in the interest of the efficient management of the portfolio, the aforementioned investments may also be effected by way of derivatives, provided the limits set out in Chapter 6, “Investment Restrictions” are observed. These derivatives include futures and options on equities, equity‐like securities and equity indices of companies and closed‐end real estate investment trusts (REITs) which are domiciled in or carry out the bulk of their business activities in emerging countries. In addition, the Subfund may – subject to the investment principles set out above – invest up to 30% of its net assets in structured products (certificates, notes) on equities, equity‐type securities, equity baskets and equity indices that are sufficiently liquid and are issued by first‐class banks (or issuers offering investor protection comparable to that of first‐class banks). These structured products must qualify as securities pursuant to Art. 41 of the Law of December 17, 2010. Moreover, these structured products must be valued regularly and transparently on the basis of independent sources. Structured products must not entail any leverage effect. As well as satisfying the regulations on risk spreading, the equity baskets and equity indices must be sufficiently diversified. Furthermore, to hedge currency risks and to gear its assets to one or more other currencies, the Subfund may enter into forward foreign exchange and other currency derivatives in accordance with section 3 of Chapter 6, “Investment Restrictions”. The indices on which such derivatives are based shall be chosen in accordance with Art. 9 of the Grand‐Ducal Decree of February 8, 2008. Liquid assets held by this Subfund in the form of sight and time deposits, together with debt instruments which generate interest income within the meaning of EU directive 2003/48/EC and UCITS which themselves invest in short‐term time deposits and money market instruments may not exceed 25% of the Subfund’s net assets. Global Exposure The global exposure of the Subfund will be calculated on the basis of the commitment approach. Risk Information The probable returns on securities of issuers from emerging markets are generally higher than the returns on similar securities of equivalent issuers from countries not classed as emerging (i.e. developed countries). Emerging countries and developing markets are defined as countries which are not classified by the World Bank as high income countries. In addition, high income countries which are included in an emerging market financial index of a leading service provider may also be considered as emerging countries and developing markets if deemed appropriate by the Management Company in the context of a Sub‐Fund's investment universe. Potential investors should be aware that, due to the political and economic situation in emerging countries, investments in this Subfund entail a greater degree of risk, which could in turn reduce the return on the Subfund’s assets. Investments in these Subfunds should only be made on a long‐term basis. The investments of this Subfund are exposed to the following risks (among others): less effective public supervision, accounting and auditing methods and standards which do not match the requirements of Western legislation, possible restrictions on repatriation of the capital invested, counterparty risk in respect of individual transactions, market volatility, and insufficient liquidity affecting the Subfund’s investments. A fluctuation in the exchange rate of local currencies in the emerging countries in relation to the Reference Currency will bring about a
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
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corresponding, simultaneous fluctuation in the net assets of the Subfund as expressed in the Reference Currency, while local currencies in emerging countries may be subject to foreign exchange restrictions. Investors should note in particular that dividends generated by the Company’s investments for the account of the Subfund may be subject to non‐recoverable withholding tax. This could impair the Subfund’s income. Furthermore, capital gains generated by the Company’s investments for the account of the Subfund may also be subject to capital gains tax and to repatriation limitations. Further information on the risk of investments in emerging markets and REITs are set out in Chapter 7, “Risk Factors”. Investor Profile This Subfund is suitable for investors wishing to participate in the economic development of the real estate markets in emerging countries. Investors will be looking for a balanced, broad and diversified exposure to companies in this sector. As the investments are focused on equities – which can be subject to wide fluctuations in value – investors should have a long investment horizon. Prospective investors in this Subfund should inform themselves as to the tax consequences applicable in the countries of their citizenship, residence or domicile. Investment Manager The Management Company has appointed Credit Suisse AG, Zurich, as Investment Manager to assist it in the management of this Subfund. Subscription, Redemption and Conversion of Shares Subscription, redemption and conversion applications must be received by the Central Administration or a Distributor by 3 p.m. (Central European Time) two Banking Days prior to the Valuation Day (as defined above). Subscription, redemption and conversion applications received after this cutoff point shall be deemed to have been duly received on the Banking Day prior to the next Valuation Day. Adjustment of the Net Asset Value (Single Swing Pricing) The Net Asset Value calculated in accordance with Chapter 8, “Net Asset Value” will be increased by up to a maximum of 2% per Share in the event of a net surplus of subscription applications or reduced by up to a maxi‐mum of 2% per Share in the event of a net surplus of redemption applications in respect of the applications received on the respective Valuation Day. Under exceptional circumstances the Company may, in the interest of Shareholders, decide to increase the maximum swing factor indicated above. In such case the Company would inform the investors in accordance with Chapter 14, “Information for Shareholders”. Credit Suisse SICAV One (Lux) Equity Global Property Income Investment Objective The objective of the Subfund is to achieve the highest possible return in US dollars (Reference Currency), while taking due account of the principle of risk diversification, the security of the capital invested, and the liquidity of the invested assets. Investment Principles The Subfund tracks the performance of the reference portfolio by investing in one or more “unfunded swaps” with first‐class financial institutions as counterparty. The Subfund shall (i) enter into a total return swap (the “Swap”) with a predetermined investment term on an arm’s length basis with a first class financial institution such as Credit Suisse International acting as the swap counterparty (the “Swap Counterparty”). The purpose of the Swap is that the Subfund receives the return of the Reference Portfolio and pays a financing rate. The Subfund’s assets should generate a return which corresponds to the financing rate payable. Accordingly, the Subfund is not, and ultimately the Shareholders are not entitled to receive any income due and received from the Subfund’s Assets and (ii) invest the
subscription net proceeds collected when issuing Shares of the Subfund in liquid assets, bonds issued or guaranteed by a Member State of the OECD or by their local public authorithies or by supranational institutions and undertakings with EU, regional or world wide scope, mostly bonds issued or guaranteed by first class issuers, shares dealt on a regulated market of the OECD or EU on the condition that these shares are included in a main index, shares or units issued by UCITS investing mainly in bond/shares mentioned as above and shares or units issued by money market UCIs with daily net assets value and having a AAA rating or its equivalent. Contrary to what is stated in section 5 of Chapter 6, “Investment Restrictions”, the Subfund may invest up to 100% of its net assets in shares or units of other UCITSs and/or other UCIs pursuant to section 1) paragraph e) of Chapter 6, “Investment Restrictions”. Description of the Reference Portfolio The reference portfolio consists of the following two components: • “equity” portfolio component and • “covered short call” portfolio component, as described below. Description of the “equity” portfolio component The “equity” component of the reference portfolio is invested worldwide in equities and equity‐type securities (American depository receipts [ADRs], global depository receipts [GDRs], profit‐sharing certificates, dividend rights certificates, participation certificates, etc.) of global real estate companies and closed‐end real estate investment trusts (REITs). “Real estate companies” typically include those companies that are engaged in the planning, construction, ownership, management or sale of residential, commercial or industrial real estate. Furthermore, the reference portfolio may invest in companies which obtain the majority of their revenues by financing the above activities. The reference portfolio may additionally invest up to 30% of its net assets, on a worldwide basis and in any currency, in equities and equity‐type securities of companies whose activities are closely connected with real estate, such as manufacturers and distributors of goods for the construction industry. Description of the “covered short call” portfolio component The reference portfolio may pursue an overlay strategy (covered call strategy) comprising the sale of covered call options (short positions) on the underlying share portfolio (long position). The maximum nominal value of the short call positions may not exceed 100% of the reference portfolio’s net assets. The options on equities and equity‐like securities are in line with the requirements of Chapter 6, “Investment Restrictions”. Valuation To determine the net asset value of the Subfund, the assets taking account of any ancillary liquid assets held, the swap contracts and any charges and costs incurred, are valued on each Valuation Day. The swap contracts are valued on each Valuation Day based on a calculation of the capitalized value of their expected money flows. Global Exposure The global exposure of the Subfund will be calculated on the basis of the commitment approach. Risk Information In addition to the risks listed in Chapter 7, “Risk Factors”, potential investors should note that various risks arising from money flows in connection with subscriptions and redemptions may reduce the targeted return. Moreover, potential investors should be aware of the fact that the counterparty risk cannot be eliminated completely in derivative strategies. In case of default of the counterparty, the investor returns may be reduced. The counterparties under the various contracts may be one and the same entity, which may lead to a concentration of counterparty risk. However, when it has been considered as appropriate, the Subfund will endeavour to mitigate this risk by the receipt of financial collateral given as guarantees or minimize this risk by taking various diversification measures. The value of the Subfunds’ shares is linked to the reference portfolio, which may either rise or fall. Since the reference portfolio consists of
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
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several investment classes, the value of the Subfunds’ shares is dependent on the usual fluctuations on the equity markets and related derivatives markets. Consequently, the value of the investment can both rise and fall. Investor Profile This Subfund is suitable for investors who are more concerned with maximising long term returns than minimising possible short term losses. Costs associated with Investments in Target Funds The Management Company shall be entitled to a fee in return for managing the Subfund. The amount, calculation and payment of this fee for the Subfund is set out in Chapter 2, “Summary of Share Classes”. Besides the expenses incurred by the Management Company in managing the Subfunds, a management fee shall be indirectly deducted from the assets of each Subfund in respect of the Target Funds contained therein. Contrary to what is stated in section 5 of Chapter 6, “Investment Restrictions”, the Management Company may also charge a management fee for investments in Target Funds considered to be associated funds in the aforementioned provision. The cumulative management fee at Subfund and Target Fund level shall not exceed 4.00%. Investment Manager The Management Company has appointed Credit Suisse AG, Zurich, as Investment Manager to assist it in the management of this Subfund. Net Asset Value Notwithstanding the provisions of Chapter 8, “Net Asset Value”, the Net Asset Value of the Shares of the Subfund shall be calculated on each day on which banks are normally open all day for business in Luxembourg and New York (each such day being referred to as a “Valuation Day”). In case the portfolio composition change and the majority of the underlying holdings cannot be valued, the Net Asset Value of the Shares of the Subfund shall be calculated on the next possible Valuation Day. Subscription, Redemption and Conversion of Shares Subscription, redemption and conversion applications must be received by the Central Administration or a Distributor by 3 p.m. (Central European Time) two Banking Days prior to the Valuation Day (as defined above). Subscription, redemption and conversion applications received after this cutoff point shall be deemed to have been duly received on the Banking Day prior to the next Valuation Day. Payment of the issue price must be effected within two Banking Days after the Valuation Day on which the issue price of the Shares was determined. Payment of the redemption price of the Shares shall be made within two Banking Days following calculation of this price. Adjustment of the Net Asset Value (Single Swing Pricing) The Net Asset Value calculated in accordance with Chapter 8, “Net Asset Value” will be increased by up to a maximum of 2% per Share in the event of a net surplus of subscription applications or reduced by up to a maxi‐mum of 2% per Share in the event of a net surplus of redemption applications in respect of the applications received on the respective Valuation Day. Under exceptional circumstances the Company may, in the interest of Shareholders, decide to increase the maximum swing factor indicated above. In such case the Company would inform the investors in accordance with Chapter 14, “Information for Shareholders”. Credit Suisse SICAV One (Lux) Equity Global Security Investment Objective The objective of the Subfund is to achieve the highest possible return in US dollars (Reference Currency), while taking due account of the principle of risk diversification, the security of the capital invested, and the liquidity of the invested assets.
Investment Principles At least two‐thirds of this Subfund’s assets are invested worldwide in companies active in information technology, healthcare and industry which offer products and services in the fields of environmental security, IT security, health protection, traffic safety and protection against crime. Furthermore, the Subfund may invest in companies which obtain the majority of their revenues by financing the above activities. The Subfund may also invest in emerging markets. In this context, emerging countries and developing markets are defined as countries which are not classified by the World Bank as high income countries. In addition, high income countries which are included in an emerging market financial index of a leading service provider may also be considered as emerging countries and developing markets if deemed appropriate by the Management Company in the context of a Sub‐Fund's investment universe. For hedging purposes and in the interest of the efficient management of the portfolio, the aforementioned investments may also be effected by way of derivatives, such as futures and options on equities, equity‐type securities and equity indices, provided the limits set out in Chapter 6, “Investment Restrictions”, are observed. In addition, the Subfund may – subject to the investment principles set out above – invest in structured products (certificates, notes) on equities, equity‐type securities, equity baskets and equity indices that are sufficiently liquid and issued by first‐class banks (or by issuers that offer investor protection comparable to that provided by first‐class banks). These structured products must qualify as securities pursuant to Art. 41 of the Law of December 17, 2010. These structured products must be valued regularly and transparently on the basis of independent sources. Structured products must not entail any leverage effect. As well as satisfying the regulations on risk spreading, the equity baskets and equity indices must be sufficiently diversified. Furthermore, to hedge currency risks and to gear its assets to one or more other currencies, the Subfund may enter into forward foreign exchange and other currency derivatives in accordance with section 3 of Chapter 6, “Investment Restrictions”. The indices on which such derivatives are based shall be chosen in accordance with Art. 9 of the Grand‐Ducal Decree of February 8, 2008. Liquid assets held by this Subfund in the form of sight and time deposits, together with debt instruments which generate interest income within the meaning of EU directive 2003/48/EC and UCITS which themselves invest in short‐term time deposits and money market instruments may not exceed 25% of the Subfund’s net assets. Global Exposure The global exposure of the Subfund will be calculated on the basis of the commitment approach. Risk Information The probable returns on securities of issuers from emerging countries (emerging markets) are generally higher than the returns on similar securities of equivalent issuers from countries not classed as emerging (i.e. developed countries). Emerging countries and developing markets are defined as countries which are not classified by the World Bank as high income countries. In addition, high income countries which are included in an emerging market financial index of a leading service provider may also be considered as emerging countries and developing markets if deemed appropriate by the Management Company in the context of a Sub‐Fund's investment universe. The markets in emerging countries are much less liquid than the developed equity markets. Moreover, in the past, these markets have experienced higher volatility than the developed markets. Potential investors should be aware that, due to the political and economic situation in emerging countries, investments in this Subfund entail a greater degree of risk, which could in turn reduce the return on the Subfund’s assets. Investments in these Subfunds should only be made on a long‐term basis. The investments of this Subfund are exposed to the following risks (among others): less effective public supervision, accounting and auditing methods and standards which do not match the requirements of Western legislation, possible restrictions on repatriation of the capital invested, counterparty risk in respect of individual transactions, market volatility, and insufficient liquidity affecting the Subfund’s investments. It must also be borne in mind that companies are selected regardless of their market capitalization (micro, small, mid,
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
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large caps) or sector. This may lead to a concentration in terms of market segments or sectors. A fluctuation in the exchange rate of local currencies in the emerging countries in relation to the Reference Currency will bring about a corresponding, simultaneous fluctuation in the net assets of the Subfund as expressed in the Reference Currency, while local currencies in emerging countries may be subject to foreign exchange restrictions. Investors should note in particular that dividends generated by the Company’s investments for the account of the Subfund may be subject to non‐recoverable withholding tax. This could impair the Subfund’s income. Furthermore, capital gains generated by the Company’s investments for the account of the Subfund may also be subject to capital gains tax and to repatriation limitations. Further information on the risks of equity investments and investments in emerging markets is set out in Chapter 7, “Risk Factors”. Investor Profile The Subfund is suitable for investors wishing to participate in companies offering products and services in environmental security, IT security, health protection, traffic safety and protection against crime. Investors will be looking for balanced, broad and diversified exposure to companies active primarily in information technology, healthcare or industry. Investors will be looking for balanced, broad and diversified exposure to companies in these sectors. As the investments are focused on equities – which can be subject to wide fluctuations in value – investors should have a medium to long investment horizon. Investment Manager The Management Company has appointed Credit Suisse AG, Zurich, as Investment Manager to assist with the management of this Subfund. Adjustment of the Net Asset Value (Single Swing Pricing) The Net Asset Value calculated in accordance with Chapter 8, “Net Asset Value” will be increased by up to a maximum of 2% per Share in the event of a net surplus of subscription applications or reduced by up to a maxi‐mum of 2% per Share in the event of a net surplus of redemption applications in respect of the applications received on the respective Valuation Day. Under exceptional circumstances the Company may, in the interest of Shareholders, decide to increase the maximum swing factor indicated above. In such case the Company would inform the investors in accordance with Chapter 14, “Information for Shareholders”. Credit Suisse SICAV One (Lux) Equity Global Small & Mid Cap Investment Objective The objective of the Subfund is to achieve the highest possible return in US dollars (Reference Currency), while taking due account of the principle of risk diversification, the security of the capital invested, and the liquidity of the invested assets. Investment Principles At least two‐thirds of the Subfund’s assets are invested in equities and other equity‐type securities and rights (American depository receipts [ADRs], global depository receipts, profit‐sharing certificates, participation certificates, dividend rights certificates, etc.) of small and medium‐sized companies worldwide. Small and medium‐sized companies are defined as all companies with a market capitalization of less than 10 billion USD at the time the investment is made. The Subfund may also invest up to 40% in emerging countries and developing markets. In addition, the Subfund may in particular invest up to one‐third of its total assets, on a worldwide basis and in any currency, in sight deposits or other deposits callable as per section 1) f) of Chapter 6 “Investment Restrictions”, or in money market instruments as per section 1) h) Chapter 6 “Investment Restrictions”, or in other liquid instruments. For hedging purposes and in the interest of the efficient management of the portfolio, the aforementioned investments may also be effected by way of derivatives, such as futures and options on equities, equity‐type
securities and equity indices of companies worldwide, provided the limits set out in Chapter 6, “Investment Restrictions”, are observed. In addition, the Subfund may – subject to the investment principles set out above – invest up to 30% in structured products (certificates, notes) on equities, equity‐type securities, equity baskets and equity indices of companies worldwide that are sufficiently liquid and issued by first‐class banks (or by issuers that offer investor protection comparable to that provided by first‐class banks). These structured products must qualify as securities pursuant to Art. 41 of the Law of December 17, 2010. These structured products must be valued regularly and transparently on the basis of independent sources. Structured products must not entail any leverage effect. As well as satisfying the regulations on risk spreading, the equity baskets and equity indices must be sufficiently diversified. Furthermore, to hedge currency risks and to gear its assets to one or more other currencies, the Subfund may enter into forward foreign exchange and other currency derivatives in accordance with section 3 of Chapter 6, “Investment Restrictions”. The indices on which such derivatives are based shall be chosen in accordance with Art. 9 of the Grand‐Ducal Decree of February 8, 2008. Liquid assets held by this Subfund in the form of sight and time deposits, together with debt instruments which generate interest income within the meaning of EU directive 2003/48/EC and UCITS which themselves invest in short‐term time deposits and money market instruments may not exceed 25% of the Subfund’s net assets. Global Exposure The global exposure of the Subfund will be calculated on the basis of the commitment approach. Risk Information The probable returns on securities of issuers from emerging countries (emerging markets) are generally higher than the returns on similar securities of equivalent issuers from countries not classed as emerging (i.e. developed countries). Emerging countries and developing markets are defined as countries which are not classified by the World Bank as high income countries. In addition, high income countries which are included in a emerging market financial index of a leading service provider may also be considered as emerging countries and developing markets if deemed appropriate by the Management Company in the context of a Sub‐Fund's investment universe. The markets in emerging countries are much less liquid than the developed equity markets. Moreover, in the past, these markets have experienced higher volatility than the developed markets. Potential investors should be aware that, due to the political and economic situation in emerging countries, investments in this Subfund entail a greater degree of risk, which could in turn reduce the return on the Subfund’s assets. Investments in these Subfunds should only be made on a long‐term basis. The investments of this Subfund are exposed to the following risks (among others): less effective public supervision, accounting and auditing methods and standards which do not match the requirements of Western legislation, possible restrictions on repatriation of the capital invested, counterparty risk in respect of individual transactions, market volatility, and insufficient liquidity affecting the Subfund’s investments. Investing in the securities of smaller, lesser‐known companies involves greater risk and the possibility of greater price volatility due to the less certain growth prospects of smaller firms, the lower degree of liquidity of the markets for such stocks and the greater sensitivity of smaller companies to changing market conditions. A fluctuation in the exchange rate of local currencies in the emerging countries in relation to the Reference Currency will bring about a corresponding, simultaneous fluctuation in the net assets of the Subfund as expressed in the Reference Currency, while local currencies in emerging countries may be subject to foreign exchange restrictions. Investors should note in particular that dividends generated by the Company’s investments for the account of the Subfund may be subject to non‐recoverable withholding tax. This could impair the Subfund’s income. Furthermore, capital gains generated by the Company’s investments for the account of the Subfund may also be subject to capital gains tax and to repatriation limitations. Further information on the risks of equity investments and investments in emerging markets is set out in Chapter 7, “Risk Factors”.
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
35
Investor Profile This Subfund is suitable for investors wishing to participate in the economic development of small and mid cap companies in the equitymarket specified in the respective investment policy. Investors will be looking for balanced, broad and diversified exposure to this market segment. As the investments are focused on equities – which can be subject to wide fluctuations in value – investors should have a medium to long investment horizon. Investment Manager The Management Company has appointed Credit Suisse Asset Management LLC, One Madison Avenue, New York, NY 10010, USA, as Investment Manager to assist with the management of this Subfund. The investment management agreement between the Subfund and the Investment Manager provides the right for the Investment Manager to effect transactions with or through the agency of a third person with whom the Investment Manager has a soft commission agreement. The services to be rendered by such a third party must be in direct relation to the activities of the Investment Manager and must be in the interest of the Subfund. The soft commissions shall not be payable to physical persons and the soft commissions and related party transactions shall be disclosed in the periodic reports of the Company. A soft commission is any economic benefit (other than clearing and execution services) provided by a broker/dealer to an investment manager in connection with the payment of commissions on transactions carried out with that broker/dealer. Adjustment of the Net Asset Value (Single Swing Pricing) The Net Asset Value calculated in accordance with Chapter 8, “Net Asset Value” will be increased by up to a maximum of 2% per Share in the event of a net surplus of subscription applications or reduced by up to a maxi‐mum of 2% per Share in the event of a net surplus of redemption applications in respect of the applications received on the respective Valuation Day. Under exceptional circumstances the Company may, in the interest of Shareholders, decide to increase the maximum swing factor indicated above. In such case the Company would inform the investors in accordance with Chapter 14, “Information for Shareholders”. Credit Suisse SICAV One (Lux) Equity Japan Value Investment Objective The objective of the Subfund is to achieve the highest possible return in Japanese yen (Reference Currency), while taking due account of the principle of risk diversification, the security of the capital invested, and the liquidity of the assets. Investment Principles At least two‐thirds of the Subfund’s assets are invested in equities and equity‐type securities (American depository receipts [ADRs], global depository receipts [GDRs], profit‐sharing certificates, dividend rights certificates, participation certificates, etc.) of companies which are domiciled in or carry out the bulk of their business activities in Japan and are considered to be value stocks. The value stocks are determined by the investment manager on the basis of fundamental criteria such as price/book ratio, price/earnings ratio, dividend yield and operating cash flow. For hedging purposes and in the interest of the efficient management of the portfolio, the aforementioned investments may also be effected by way of derivatives, provided the limits set out in Chapter 6, “Investment Restrictions” are observed. These derivatives include futures and options on equities, equity‐like securities and equity indices of companies which are domiciled in or conduct the bulk of their business activities in Japan. In addition, the Subfund may – subject to the investment principles set out above – invest up to 30% of its net assets in structured products (certificates, notes) on equities, equity‐type securities, equity baskets and equity indices that are sufficiently liquid and are issued by first‐class banks (or issuers offering investor protection comparable to that of first‐class banks). These structured products must qualify as securities pursuant to Art. 41 of the Law of December 17, 2010. Moreover, these
structured products must be valued regularly and transparently on the basis of independent sources. Structured products must not entail any leverage effect. As well as satisfying the regulations on risk spreading, the equity baskets and equity indices must be sufficiently diversified. Furthermore, to hedge currency risks the Subfund may enter into forward foreign exchange and other currency derivatives in accordance with section 3 of Chapter 6, “Investment Restrictions”. The indices on which such derivatives are based shall be chosen in accordance with Art. 9 of the Grand‐Ducal Decree of February 8, 2008. Liquid assets held by this Subfund in the form of sight and time deposits, together with debt instruments which generate interest income within the meaning of EU directive 2003/48/EC and UCITS which themselves invest in short‐term time deposits and money market instruments may not exceed 25% of the Subfund’s net assets. Global Exposure The global exposure of the Subfund will be calculated on the basis of the commitment approach. Risk Information Investments in this Subfund should only be made on a long‐term basis. The investments of this Subfund are exposed to the following risks (among others): Counterparty risk for individual transactions, market volatility, or insufficient liquidity may impair the Subfund’s investments. It must also be borne in mind that companies are selected regardless of their market capitalization (micro, small, mid, large caps) or sector. This may lead to a concentration in terms of market segments or sectors. Further information on the risk of investments in equities is set out in Chapter 7, “Risk Factors”. Investor Profile This Subfund is suitable for investors wishing to participate in the development of equity markets in Japan. Investors will be looking for a diversified exposure to companies in this economic area. As the investments are focused on equities – which can be subject to wide fluctuations in value – investors should have a long‐term investment horizon. Investment Manager The Management Company has appointed Credit Suisse AG, Zurich, as Investment Manager to assist with the management of this Subfund. Adjustment of the Net Asset Value (Single Swing Pricing) The Net Asset Value calculated in accordance with Chapter 8, “Net Asset Value” will be increased by up to a maximum of 2% per Share in the event of a net surplus of subscription applications or reduced by up to a maxi‐mum of 2% per Share in the event of a net surplus of redemption applications in respect of the applications received on the respective Valuation Day. Under exceptional circumstances the Company may, in the interest of Shareholders, decide to increase the maximum swing factor indicated above. In such case the Company would inform the investors in accordance with Chapter 14, “Information for Shareholders”. Credit Suisse SICAV One (Lux) Equity Top of Europe 0/100 Investment Objective The aim of this Subfund is to achieve the maximum possible absolute return in the Reference Currency by investing in the European markets while running tactical market timing. The Subfund will be managed actively with a long equity strategy within the European region in small, mid and large Cap Equities; to implement the investment strategy applied, considerable use will be made of financial derivatives. Investment Principles The Subfund will invest in a diversified portfolio of equities or equity‐type securities of about 40 different issuers which the Investment Manager considers among the best stock ideas in Europe. The Subfund's market exposure will be either 0% (fully hedged) or 100% (fully exposed).
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
36
To achieve its investment objective, the Subfund basically has a direct or synthetic exposure to selected equities or equity‐type securities issued primarily by small, mid and large‐sized European companies which are domiciled in or carry out the bulk of their business activities in the European region or which are listed on a European stock exchange. The European region includes all EU and EFTA countries. Under the terms of Article 41 (1) of the Law of December 17, 2010, the Subfund’s assets are invested, irrespective of currency but in accordance with the principle of risk diversification, in equities and equity type securities (global depository receipts (GDRs), profit‐sharing certificates, dividend rights certificates, participation certificates, etc.) The Subfund may tactically reduce its market exposure by selling futures in times of expected market downgrade. To augment the above‐mentioned investments and with a view to pursuing its investment strategy, the Subfund makes use of the derivatives described below: a) Sale of futures contracts on equities or equity indices within the
investment universe described under “Investment Principles”. The Subfund may only enter into futures contracts that are traded on a stock exchange or another regulated market open to the public that is domiciled in an OECD country. Up to a total of 100% of the Subfund’s assets may be invested in futures; this limit refers to the contract value of the futures contracts entered into. These indices shall be chosen in accordance with Art. 9 of the Grand‐Ducal Decree of February 8, 2008.
b) Purchase and sale of put or call options on equities or equity indices within the investment universe described under “Investment Principles”.
The aforementioned derivatives may be used in anticipation of falling prices (short positions). The Subfund may engage in active currency allocation. In doing so, it may buy investment currencies on the basis of forward currency contracts up to the value of the associated net assets and may sell them against another investment currency for up to the same amount. Liquid assets held by this Subfund in the form of sight and time deposits, together with debt instruments which generate interest income within the meaning of EU directive 2003/48/EC and UCITS which themselves invest in short‐term time deposits and money market instruments may not exceed 15% of the Subfund’s net assets. Global Exposure The global exposure of the Subfund will be calculated on the basis of the commitment approach. Risk Information In addition to the risks listed in Chapter 7, “Risk Factors”, potential investors should note that the Subfund pursues an investment strategy that can be extremely volatile and that the risk of loss is considerable. Investments in futures, options, CFDs and other derivatives may expose the Subfund to higher volatility than investments in traditional securities, and the risk of loss is greater. Investors should also note that the Subfund’s investments may be selected without regard to capitalization, sector, or geographical location. This may lead at least to a concentration in geographical or sector terms. Further information on the risk of equity investments and investments in emerging markets is set out in Chapter 7, “Risk Factors”. Emerging countries and developing markets are defined as countries which are not classified by the World Bank as high income countries. In addition, high income countries which are included in an emerging market financial index of a leading service provider may also be considered as emerging countries and developing markets if deemed appropriate by the Management Company in the context of a Subfund's investment universe. The financial instruments and techniques mentioned above allow the Subfund to exert leverage. As a result both positive and, in particular, negative price movements are greatly accentuated. The Subfund’s assets are subject to normal market fluctuations. There can therefore be no guarantee that the investment objective will be met. Moreover, potential investors should be aware of the fact that the counterparty risk cannot be eliminated completely in derivative strategies. In case of default of the counterparty, the investor returns may be reduced. However, when it has been considered as appropriate, the Subfund will endeavour to mitigate
this risk by the receipt of financial collateral given as guarantees or minimize this risk by taking various diversification measures. Investor Profile The Subfund is suitable for investors seeking equity market exposure and delegating the decision to reduce equity market exposure in times of expected equity markets to go down. As the Subfund is a complex investment product, investors should be well informed and, in particular, have a good knowledge of derivatives. Investment Manager The Management Company has appointed Credit Suisse AG, Zurich, as Investment Manager to assist it in the management of this Subfund. Performance Fee In addition to the Management Fee, the Management Company is entitled to a performance fee for the Subfund which is calculated on the basis of the unswung Net Asset Value of the Share Class concerned. The performance fee is calculated with each unswung Net Asset Value. The necessary provisions are made accordingly. A performance fee may only be levied if, on the Valuation Day, the unswung Net Asset Value of a Share Class on a Trading Day used in the calculation of the performance fee exceeds all the unswung Net Asset Values previously achieved (“high water mark”). If, on the Valuation Date, the unswung Net Asset Value (prior to deduction of the performance fee) of a Share Class is greater than the preceding unswung Net Asset Values (prior to deduction of the performance fee) applicable to the previous Trading Days, a performance fee of 10% shall be deducted on the difference between the unswung Net Asset Value of the Share Class on the Valuation Day and the high water mark. Calculation of the performance fee takes place on the basis of the Shares of the relevant Class that are currently in circulation. The performance fee calculated and set aside under the above method is paid at the beginning of the respective quarter. The levied performance fee cannot be refunded if the unswung Net Asset Value falls again after deduction of the fee. A performance fee is payable when the following condition applies: NAVt > HWM, If this condition is met, then: 0.1×[NAVt – HWM] × number of shares t where: NAVt = current unswung Net Asset Value (prior to deduction of the performance fee) on the Valuation Day NAV0 = initial unswung Net Asset Value HWM = high watermark = max {NAV0..NAVT‐1}, t = current Valuation Day A hurdle rate is not provided for. Adjustment of the Net Asset Value (Single Swing Pricing) The Net Asset Value calculated in accordance with Chapter 8, “Net Asset Value” will be increased by up to a maximum of 2% per Share in the event of a net surplus of subscription applications or reduced by up to a maxi‐mum of 2% per Share in the event of a net surplus of redemption applications in respect of the applications received on the respective Valuation Day. Under exceptional circumstances the Company may, in the interest of Shareholders, decide to increase the maximum swing factor indicated above. In such case the Company would inform the investors in accordance with Chapter 14, “Information for Shareholders”. Credit Suisse SICAV One (Lux) European Equity Dividend Plus Investment Objective The objective of the Subfund is to achieve the highest possible return in the respective Reference Currency, while taking due account of the principle of risk diversification, the security of the capital invested, and the liquidity of the assets. The Subfund invests in a broadly diversified equity portfolio which can be expected to generate an above‐average dividend yield.
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
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Investment Principles At least two‐thirds of the Subfund’s assets are invested in equities and other equity‐type securities and rights (American depository receipts [ADRs], global depository receipts, profit‐sharing certificates, participation certificates, dividend rights certificates, etc.) of companies which are domiciled in or carry out the bulk of their business activities in Europe (including Eastern Europe). The Subfund may also invest in emerging countries and developing markets. For the purpose of this Subfund, Eastern European countries are defined as the nations of Central and Eastern Europe, including Russia and Turkey. The Subfund Credit Suisse SICAV One (Lux) European Equity Dividend Plus is eligible to the French personal equity plan (“plan d’épargne en actions” or “PEA”). In this context, the Management Company undertakes that the said Subfund will invest on a permanent basis at least 75% of its assets in securities or rights eligible to the PEA. In the interest of the efficient management of the portfolio, the aforementioned investments may also be effected indirectly by way of derivatives, provided the limits set out in Chapter 6, “Investment Restrictions”, are observed. Furthermore, the Subfund may make greater use of the derivative transactions listed below in order to optimize the overall portfolio return: a) buying and selling put and call options on equities and equity
indices, b) buying and selling futures on equities, equity indices and dividend
indices as well as on the dividend yields of equities and equity indices. The Subfund may only enter into futures that are traded on a stock exchange or another regulated market open to the public that is domiciled in an OECD country.
c) buying and selling derivatives with an underlying volatility index that meets the requirements specified in section 4 g) of chapter 6 "Investment Restrictions".
The indices on which such derivatives are based shall be chosen in accordance with Art. 9 of the Grand‐Ducal Decree of February 8, 2008. In accordance with Chapter 6, “Investment Restrictions”, derivatives may also be used for hedging purposes. Furthermore, to hedge currency risks and to gear its assets to one or more other currencies that fit the investment policy, the Subfund may enter into forward foreign exchange and other currency derivatives in accordance with section 3 of Chapter 6, “Investment Restrictions”. The underlying value of all derivatives must not exceed 100% of the Subfund’s Net Asset Value. Liquid assets held by this Subfund in the form of sight and time deposits, together with debt instruments which generate interest income within the meaning of EU directive 2003/48/EC and UCITS which themselves invest in short‐term time deposits and money market instruments may not exceed 15% of the Subfund’s net assets. In addition, the Subfund may – subject to the investment principles set out above – invest up to 30% of its net assets in structured products on equities, equity baskets and equity indices (certificates), equity volatility indices, dividend indices and dividend yields of equities and equity indices, that are sufficiently liquid and issued by first‐class banks (or by issuers that offer investor protection comparable to that provided by first‐class banks). These structured products must qualify as securities pursuant to Art. 41 of the Law of December 17, 2010. These structured products must be valued regularly and transparently on the basis of independent sources. Structured products must not entail any leverage effect. As well as satisfying the regulations on risk spreading, the equity baskets and equity indices must be sufficiently diversified. Global Exposure The global exposure of the Subfund will be calculated on the basis of the commitment approach. Risk Information Securities of issuers from emerging markets may generally be expected to generate higher returns, and entail higher risks, than similar securities of equivalent issuers from other countries. Emerging countries and developing markets are defined as countries which are not classified by the World Bank as high income countries. In addition, high income countries which are included in an emerging market financial index of a leading service provider may also be considered as emerging countries and developing markets if deemed appropriate by the Management Company in the context of a Sub‐Fund's investment universe.
Further information on the risk of equity investments and investments in emerging markets and Russia is set out in the Prospectus in Chapter 7, “Risk Factors”. In addition, potential investors should note that various money flow risks arising from adjustments necessitated by subscriptions and redemptions may reduce the targeted return. Moreover, potential investors should be aware of the fact that the counterparty risk cannot be eliminated completely in derivative strategies. In case of default of the counterparty, the investor returns may be reduced. However, when it has been considered as appropriate, the Subfund will endeavour to mitigate this risk by the receipt of financial collateral given as guarantees or minimize this risk by taking various diversification measures. Investor Profile This Subfund is suitable for investors who would like to participate in the economic development of the European equity market. The companies are selected regardless of their market capitalization (micro, small, mid, large caps), sector or geographical location. This may lead to a concentration in geographical and/or sector terms. As the investments are focused on equities – which can be subject to wide fluctuations in value – investors should have a medium to long investment horizon. Distribution Shares In accordance with Chapter 11, “Appropriation of Net Income and Capital Gains”, the Board of Directors is entitled to decide to what extent and at what time distributions are to be made for Shares of Class A. The Board of Directors intends to make twice‐yearly distributions to the shareholders in June and December of each year. Investment Manager The Management Company has appointed Credit Suisse AG, Zurich, as Investment Manager to assist with the management of this Subfund. Adjustment of the Net Asset Value (Single Swing Pricing) The Net Asset Value calculated in accordance with Chapter 8, “Net Asset Value” will be increased by up to a maximum of 2% per Share in the event of a net surplus of subscription applications or reduced by up to a maxi‐mum of 2% per Share in the event of a net surplus of redemption applications in respect of the applications received on the respective Valuation Day. Under exceptional circumstances the Company may, in the interest of Shareholders, decide to increase the maximum swing factor indicated above. In such case the Company would inform the investors in accordance with Chapter 14, “Information for Shareholders”. Credit Suisse SICAV One (Lux) Global Convertibles Investment Objective The objective of this Subfund is to generate the highest possible return in the US dollar (Reference Currency), while keeping fluctuations in value to a minimum. Investment Principles At least two‐thirds of the total assets of the Subfund shall be invested in convertible bonds, convertible notes, warrant bonds, options on bonds (warrants) and similar securities with option rights, of public, semi‐public and private issuers worldwide and irrespective of currency. The portion invested in currencies other than the Reference Currency of the Subfund does not need to be hedged against the Reference Currency of the Subfund. Accordingly, any fluctuation in the exchange rate for such currencies in relation to the Reference Currency of the Subfund will affect the Net Asset Value of the Subfund. In addition to direct investments, the Subfund may conduct futures and options as well as swap transactions (interest rate swaps s) for the purpose of hedging and the efficient management of the portfolio, provided due account is taken of the investment restrictions set out in Chapter 6, “Investment Restrictions”. Furthermore, the Subfund may actively manage its currency exposure through the use of currency futures and swap transactions.
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
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For the purpose of duration management, the Subfund may make greater use of interest rate futures, subject to the investment restrictions set out in Chapter 6, “Investment Restrictions”, section 3). The Subfund may – for the purpose of managing interest rate risks – buy and sell interest rate futures. The commitments entered into may exceed the value of the securities assets held in this currency, but must not exceed the Subfund’s total Net Asset Value. Subject to the investment restrictions set out in Chapter 6, “Investment Restrictions”, section 3, the Management Company may use securities (credit linked notes) as well as techniques and instruments (credit default swaps) for the purpose of managing the credit risk of the Subfund. The Subfund may invest up to 20% of its total assets in shares, other equity interests, dividend right certificates and similar securities with equity features as well as in warrants. Global Exposure The global exposure of the Subfund will be calculated on the basis of the commitment approach. Risk Information Convertible bonds combine the opportunities and risks of equities and fixed‐income securities. Accordingly, potential investors are referred in particular to the notes on interest rate fluctuations and equities set out in Chapter 7, “Risk Factors”. Since prices of convertible bonds depend in large part on those of the underlying shares, the price risk is generally higher than that of bonds without conversion options. Furthermore, prices of convertible bonds are also influenced by the general interest rate environment. If a convertible bond is issued in a currency other than that of the underlying share, the corresponding exchange rate risk must also be taken into account. The probable returns on securities of issuers from emerging markets are generally higher than the returns on similar securities of equivalent issuers from non‐emerging markets. However, the higher return should be viewed as compensation for the greater risk to which the investor is exposed. Since this Subfund may invest in debt instruments in the lower investment grade sector, the underlying debt instruments may present a greater risk in terms of downgrading or may exhibit a greater default risk than debt instruments of first‐class issuers. The higher return should be viewed as compensation for the greater degree of risk. Investor Profile This Subfund is suitable for investors looking for an uncomplicated way to participate in a professionally structured portfolio comprising conversion and option rights of issuers domiciled worldwide. It enables them to benefit from the potential for attractive price gains, an appropriate return and broad risk diversification, and to exploit the opportunities presented by an indirect equity investment involving limited risk, without them having to forgo a secure return. Investment Manager The Management Company has appointed Credit Suisse AG, Zurich, as Investment Manager to assist with the management of this Subfund. Subscription, Redemption and Conversion of Shares Subscription, redemption and conversion applications must be received by the Central Administration or a Distributor by 1 p.m. (Central European Time) one Banking Day prior to the Valuation Day (as defined above). Subscription, redemption or conversion applications received after this cutoff point shall be deemed to have been duly received on the Banking Day prior to the next Valuation Day. Adjustment of the Net Asset Value (Single Swing Pricing) The Net Asset Value calculated in accordance with Chapter 8, “Net Asset Value” will be increased by up to a maximum of 2% per Share in the event of a net surplus of subscription applications or reduced by up to a maxi‐mum of 2% per Share in the event of a net surplus of redemption applications in respect of the applications received on the respective Valuation Day.
Under exceptional circumstances the Company may, in the interest of Shareholders, decide to increase the maximum swing factor indicated above. In such case the Company would inform the investors in accordance with Chapter 14, “Information for Shareholders”. Credit Suisse SICAV One (Lux) Global Equity Dividend Plus Investment Objective The objective of the Subfund is to achieve the highest possible return in the respective Reference Currency, while taking due account of the principle of risk diversification, the security of the capital invested, and the liquidity of the assets. The Subfund invests in a broadly diversified equity portfolio which can be expected to generate an above‐average dividend yield. Investment Principles At least two‐thirds of the Subfund’s assets are invested in equities and other equity‐type securities and rights (American depository receipts [ADRs], global depository receipts, profit‐sharing certificates, participation certificates, dividend rights certificates, etc.) of companies worldwide. The Subfund may also invest in emerging countries and developing markets. In the interest of the efficient management of the portfolio, the aforementioned investments may also be effected indirectly by way of derivatives, provided the limits set out in Chapter 6, “Investment Restrictions”, are observed. Furthermore, the Subfund may make greater use of the derivative transactions listed below in order to optimize the overall portfolio return: a) buying and selling put and call options on equities and equity
indices, b) buying and selling futures on equities, equity indices and dividend
indices as well as on the dividend yields of equities and equity indices. The Subfund may only enter into futures that are traded on a stock exchange or another regulated market open to the public that is domiciled in an OECD country.
c) buying and selling derivatives with an underlying volatility index that meets the requirements specified in section 4g) of chapter 6 “Investment Restrictions”.
The indices on which such derivatives are based shall be chosen in accordance with Art. 9 of the Grand‐Ducal Decree of February 8, 2008. In accordance with Chapter 6, “Investment Restrictions”, derivatives may also be used for hedging purposes. Furthermore, to hedge currency risks and to gear its assets to one or more other currencies that fit the investment policy, the Subfund may enter into forward foreign exchange and other currency derivatives in accordance with section 3 of Chapter 6, “Investment Restrictions”. The underlying value of all derivatives must not exceed 100% of the Subfund’s Net Asset Value. Liquid assets held by this Subfund in the form of sight and time deposits, together with debt instruments which generate interest income within the meaning of EU directive 2003/48/EC and UCITS which themselves invest in short‐term time deposits and money market instruments may not exceed 15% of the Subfund’s net assets. In addition, the Subfund may – subject to the investment principles set out above – invest up to 30% of its net assets in structured products on equities, equity baskets and equity indices (certificates), equity volatility indices, dividend indices and dividend yields of equities and equity indices, that are sufficiently liquid and issued by first‐class banks (or by issuers that offer investor protection comparable to that provided by first‐class banks). These structured products must qualify as securities pursuant to Art. 41 of the Law of December 17, 2010. These structured products must be valued regularly and transparently on the basis of independent sources. Structured products must not entail any leverage effect. As well as satisfying the regulations on risk spreading, the equity baskets and equity indices must be sufficiently diversified. Global Exposure The global exposure of the Subfund will be calculated on the basis of the commitment approach.
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
39
Risk Information Securities of issuers from emerging markets may generally be expected to generate higher returns, and entail higher risks, than similar securities of equivalent issuers from other countries. Emerging countries and developing markets are defined as countries which are not classified by the World Bank as high income countries. In addition, high income countries which are included in an emerging market financial index of a leading service provider may also be considered as emerging countries and developing markets if deemed appropriate by the Management Company in the context of a Sub‐Fund's investment universe. Further information on the risk of equity investments and investments in emerging markets is set out in the Prospectus in Chapter 7, “Risk Factors”. In addition, potential investors should note that various money flow risks arising from adjustments necessitated by subscriptions and redemptions may reduce the targeted return. Moreover, potential investors should be aware of the fact that the counterparty risk cannot be eliminated completely in derivative strategies. In case of default of the counterparty, the investor returns may be reduced. However, when it has been considered as appropriate, the Subfund will endeavour to mitigate this risk by the receipt of financial collateral given as guarantees or minimize this risk by taking various diversification measures. Investor Profile This Subfund is suitable for investors who would like to participate in the economic development of the global equity market. The companies are selected regardless of their market capitalization (micro, small, mid, large caps) or affiliation to a particular geographical region or sector. This may lead to a concentration in geographical and/or sector terms. As the investments are focused on equities – which can be subject to wide fluctuations in value – investors should have a medium to long investment horizon. Distribution Shares In accordance with Chapter 11, “Appropriation of Net Income and Capital Gains”, the Board of Directors is entitled to decide to what extent and at what time distributions are to be made for Shares of Class A. The Board of Directors intends to make twice‐yearly distributions to the shareholders in June and December of each year. Investment Manager The Management Company has appointed Credit Suisse AG, Zurich, as Investment Manager to assist with the management of this Subfund. Adjustment of the Net Asset Value (Single Swing Pricing) The Net Asset Value calculated in accordance with Chapter 8, “Net Asset Value” will be increased by up to a maximum of 2% per Share in the event of a net surplus of subscription applications or reduced by up to a maxi‐mum of 2% per Share in the event of a net surplus of redemption applications in respect of the applications received on the respective Valuation Day. Under exceptional circumstances the Company may, in the interest of Shareholders, decide to increase the maximum swing factor indicated above. In such case the Company would inform the investors in accordance with Chapter 14, “Information for Shareholders”. Credit Suisse SICAV One (Lux) IndexSelection Balanced (Sfr) The currency mentioned in the Subfund’s names is merely the Reference Currency in which the performance and Net Asset Value of the Subfund is calculated, and is not necessarily the Subfund’s investment currency. Investments may be denominated in any currency. Investment Objective Within the Subfund, the aim is to achieve long‐term capital growth in the respective Reference Currency – while taking due account of the principle of risk diversification and the liquidity of the assets – by investing in the asset classes described below and focusing on current income, capital and currency gains.
Investment Principles The Subfund invests primarily in a broadly diversified portfolio of index‐linked investment instruments (over 50%) and investment funds (“Target Funds”), including exchange traded funds, structured products and derivatives, and all the investment instruments listed in section 1 of Chapter 6, “Investment Restrictions”, subject to the restrictions specified in said Chapter. Asset Allocation The total exposure to the asset classes listed below, whether direct or indirect, must not exceed the limits specified below (in % of the Subfund’s net assets): Asset class Bandwidth Liquidity 0–60% Fixed‐interest securities 10–70% Equities 30–60% Alternative investments 0–20%
In compliance with the provisions of Chapter 6, “Investment Restrictions”, the exposure to liquid investments will be achieved directly through investments in cash, bank deposits, fixed term deposits, money market instruments which are compliant with the CESR Guidelines on a common definition of European money market funds (CESR/10‐049) or indirectly through Target Funds investing in those instruments. Depending on the market assessment, liquid assets, as referred in Chapter 4 “Investment Policy”, may account for up to 60% of the Subfund’s net assets. In compliance with the provisions of Chapter 6, “Investment Restrictions”, the exposure to alternative investments will be achieved indirectly through the use of one or more of the instruments listed below. The exposure to alternative investments may be achieved through investments in commodities (including the individual categories of commodities), real estate, natural resources, private equity, hedge funds and precious metals or any combination of these sub‐classes. If the alternative investments are to be tracked via derivatives, this must be done using derivatives which have a financial index as their underlying. Investment Instruments To achieve its investment objective, the Subfund may – subject to the aforementioned investment principles – use any of the instruments listed in section 1 of Chapter 6, “Investment Restrictions”; these may include, but not be limited to, the instruments specified below: Target Funds Contrary to what is stated in section 5 of Chapter 6, “Investment Restrictions”, the Subfund may invest up to 100% of its Net Asset Value in units of other UCITSs and/or other UCIs pursuant to section 1 e) of Chapter 6, “Investment Restrictions”. Structured Products The Subfund may invest up to 100% of its net assets in structured products (certificates, notes) that are sufficiently liquid, are issued by first‐class banks (or by issuers that offer investor protection comparable to that provided by first‐class banks), and facilitate exposure to the asset classes specified above (including currencies). These structured products must qualify as securities pursuant to Art. 41 of the Law of December 17, 2010. These structured products must be valued regularly and transparently on the basis of independent sources. Unless these structured products contain embedded derivatives pursuant to Art. 42 (3) of the Law of December 17, 2010, such products must not entail any leverage effect. The underlying of the embedded derivatives contained in such a structured product can only consist in instruments listed in section 1 of Chapter 6, “Investment Restrictions”. As well as satisfying the regulations on risk spreading, the underlying baskets and underlying indices must be sufficiently diversified. Derivatives In accordance with section 1 g) of Chapter 6, “Investment Restrictions”, the Subfund may invest up to 100% of its Net Asset Value in derivatives.
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
40
Subject to the daily mark‐to‐market valuation and any resulting adjustments, the Subfund may engage in active currency allocation using forward contracts, futures and options. The overall currency exposure will be predominantly hedged back in the Reference Currency of the Subfund by using forward contracts, futuresand options. Derivatives may also be used in the interest of the efficient management of the portfolio or for hedging purposes, provided the limits set out in Chapter 6, “Investment Restrictions” are observed. For managing the volatility of the securities portfolio or for hedging the portfolio, the Subfund may also make use of financial derivatives or certificates based on a volatility index that satisfies the requirements of section 4 g) of Chapter 6 "Investment Restrictions". The indices on which such derivatives are based shall be chosen in accordance with Art. 9 of the Grand‐Ducal Decree of February 8, 2008. The core investments of any given Subfund must not exceed 100% of its assets. Global Exposure The global exposure of the Subfund will be calculated on the basis of the commitment approach. Risk Information Investors should note that investments in Target Funds may incur the same costs both at the Subfund level and at the level of the Target Funds. Furthermore, the value of the units in the Target Funds may be affected by currency fluctuations, currency exchange transactions, tax regulations (including the levying of withholding tax) and any other economic or political factors or changes in the countries in which the Target Fund is invested, along with the aforementioned risks associated with exposure to the emerging markets. Investors should also note that the Target Funds’ investments may be selected without regard to capitalization, sector or geographical location. This may lead at least to a concentration in geographical or sector terms. At the same time, performance may be impaired by the broad risk diversification across a number of Target Funds. The investment of the assets of the Subfund in units of Target Funds entails a risk that the redemption of the units is subject to restrictions, with the consequence that such investments may be less liquid than other types of investment as the case may be. In relation to the Subfunds’ investment universe, investors should note that there are no restrictions in terms of either the size of issuers or of the issuers’ credit ratings; consequently, investors should refer to the corresponding risks specified in Chapter 7, “Risk Factors”. Potential investors should note that, in addition to the risks specified in Chapter 7, “Risk Factors”, the prospective returns generated by securities of issuers in the emerging markets are generally higher than those generated by similar securities issued by equivalent issuers in the developed, industrialized countries. Emerging countries and developing markets are defined as countries which are not classified by the World Bank as high income countries. In addition, high income countries which are included in an emerging market financial index of a leading service provider may also be considered as emerging countries and developing markets if deemed appropriate by the Management Company in the context of a Sub‐Fund's investment universe. Since the Subfund may invest in debt instruments in the non‐investment grade sector, the underlying debt instruments may present a greater risk in terms of downgrading or may exhibit a greater default risk than debt instruments of first‐class issuers. The higher return should be viewed as compensation for the greater degree of risk attached to the underlying debt instruments and the Subfund’s higher volatility. In addition to the risks entailed by traditional forms of investments (market, credit and liquidity risks), alternative investments (especially hedge funds) entail a number of specific risks due on the one hand to the fact that their investment strategy may involve the short sale of securities and, on the other hand, to the fact that a leverage effect is created by borrowing and by the use of derivatives. Owing to this leverage, the value of a Subfund’s assets rises faster than the associated costs (specifically the interest on the loans and the premiums on the derivatives used) when the capital gains on the investments acquired with the help of leverage effects are greater. When the prices fall, however, this effect is offset by a correspondingly rapid decrease in the fund’s assets. The use of derivative instruments and
especially of short selling can, in extreme cases, lead to an investment in an individual Target Fund being written off altogether. Most hedge funds are registered in countries in which the legal framework, and especially supervision by the authorities, either does not exist or does not correspond to the standards applied in western Europe or other comparable countries. The success of hedge funds depends in particular on the competence of the fund managers and the suitability of the infrastructure available to them. Investments in product, commodity or precious metal indices differ from traditional investments and entail additional risk potential and higher volatility. The assets of the Subfund are subject to the usual fluctuations experienced by the sector in question. The value of the products, commodities or precious metals is affected, for example, by fluctuations in the commodity markets, by natural or medical emergencies, by economic, political or regulatory developments around the world, and – in the case of derivatives and structured products – also by changes in interest rates. The volatility of commodity indices and historical financial market scenarios are not a guarantee of future trends. The risks entailed in alternative investments are considerable, so exposure to these investments increases the potential for losses accordingly. The Management Company, however, will seek to minimize such risks by a strict selection of investments acquired and by an appropriate spreading of risk. The distributions or dividends generated by the Company’s investments for the account of the Subfund may be subject to non‐recoverable withholding tax. This may impair the Subfund’s income. Furthermore, capital gains accruing to the Company for the account of the Subfund may be subject to capital gains tax and to repatriation limitations. The use of derivatives also involves specific risks. Accordingly, potential investors are referred in particular to the risks associated with derivatives set out in Chapter 7, “Risk Factors”. In addition, potential investors should note that various money flow risks arising from adjustments necessitated by subscriptions and redemptions may reduce the targeted return. Moreover, potential investors should be aware of the fact that the counterparty risk cannot be eliminated completely in derivative strategies. In case of default of the counterparty, the investor returns may be reduced. However, when it has been considered as appropriate, the Subfund will endeavour to mitigate this risk by the receipt of financial collateral given as guarantees or minimize this risk by taking various diversification measures. Investments in the Subfund are subject to price fluctuations. There can therefore be no guarantee that the investment objective will be met. Investor Profile The Subfund is suitable for yield‐oriented investors with medium risk capacity who are also interested in longer‐term capital growth and have a medium or long‐term investment horizon. Costs Associated with Investment in Target Funds The Management Company shall be entitled to a fee in return for managing the Subfund. The amount, calculation and payment of this fee for the Subfund is set out in Chapter2, “Summary of Share Classes”. Besides the expenses incurred by the Management Company in managing the Subfund, a management fee shall be indirectly deducted from the assets of the Subfund in respect of the Target Funds contained therein. Contrary to what is stated in section 5 of Chapter 6, „Investment Restrictions“, the Management Company may also charge a management fee for investments in Target Funds designated as Affiliated Funds in the aforementioned provision. The cumulative management fee at Subfund and Target Fund level shall not exceed 3.00%. Investment Manager The Management Company has appointed Credit Suisse AG, Zurich, as Investment Manager to assist with the management of the Subfund. Subscription, Redemption and Conversion of Shares Subscription, redemption and conversion applications must be received by the Central Administration or a Distributor by 3 p.m. (Central European Time) two Banking Days prior to the Valuation Day (as defined above).
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
41
Subscription, redemption or conversion applications received after this cutoff point shall be deemed to have been duly received on the next following Banking Day. Payment of the issue price must be effected within two Banking Days after the Valuation Day on which the issue price of the Shares was determined. Payment of the redemption price of the Shares shall be made within two Banking Days following calculation of this price. Adjustment of the Net Asset Value (Single Swing Pricing) The Net Asset Value calculated in accordance with Chapter 8, “Net Asset Value” will be increased by up to a maximum of 2% per Share in the event of a net surplus of subscription applications or reduced by up to a maxi‐mum of 2% per Share in the event of a net surplus of redemption applications in respect of the applications received on the respective Valuation Day. Under exceptional circumstances the Company may, in the interest of Shareholders, decide to increase the maximum swing factor indicated above. In such case the Company would inform the investors in accordance with Chapter 14, “Information for Shareholders”. Credit Suisse SICAV One (Lux) IndexSelection Capital Gains Oriented (Sfr) The currency mentioned in the Subfund’s names is merely the Reference Currency in which the performance and Net Asset Value of the Subfund is calculated, and is not necessarily the Subfund’s investment currency. Investments may be denominated in any currency. Investment Objective Within the Subfund, the aim is to achieve long‐term capital growth in the respective Reference Currency – while taking due account of the principle of risk diversification and the liquidity of the assets – by investing in the asset classes described below and focusing on capital and currency gains. Investment Principles The Subfund invests primarily in a broadly diversified portfolio of index‐linked investment instruments (over 50%) and investment funds (“Target Funds”), including exchange traded funds, structured products and derivatives, and all the investment instruments listed in section 1 of Chapter 6, “Investment Restrictions”, subject to the restrictions specified in said Chapter. Asset Allocation The total exposure to the asset classes listed below, whether direct or indirect, must not exceed the limits specified below (in % of the Subfund’s net assets): Asset class Bandwidth Liquidity 0–50% Fixed‐interest securities 0–50% Equities 50–80% Alternative investments 0–20%
In compliance with the provisions of Chapter 6, “Investment Restrictions”, the exposure to liquid investments will be achieved directly through investments in cash, bank deposits, fixed term deposits, money market instruments which are compliant with the CESR Guidelines on a common definition of European money market funds (CESR/10‐049) or indirectly through Target Funds investing in those instruments. In compliance with the provisions of Chapter 6, “Investment Restrictions”, the exposure to alternative investments will be achieved indirectly through the use of one or more of the instruments listed below. The exposure to alternative investments may be achieved through investments in commodities (including the individual categories of commodities), real estate, natural resources, private equity, hedge funds and precious metals or any combination of these sub‐classes. If the alternative investments are to be tracked via derivatives, this must be done using derivatives which have a financial index as their underlying.
Investment Instruments To achieve its investment objective, the Subfund may – subject to the aforementioned investment principles – use any of the instruments listed in section 1 of Chapter 6, “Investment Restrictions”; these may include, but not be limited to, the instruments specified below: Target Funds Contrary to what is stated in section 5 of Chapter 6, “Investment Restrictions”, the Subfund may invest up to 100% of its Net Asset Value in units of other UCITSs and/or other UCIs pursuant to section 1 e) of Chapter 6, “Investment Restrictions”. Structured Products The Subfund may invest up to 100% of its net assets in structured products (certificates, notes) that are sufficiently liquid, are issued by first‐class banks (or by issuers that offer investor protection comparable to that provided by first‐class banks), and facilitate exposure to the asset classes specified above (including currencies). These structured products must qualify as securities pursuant to Art. 41 of the Law of December 17, 2010. These structured products must be valued regularly and transparently on the basis of independent sources. Unless these structured products contain embedded derivatives pursuant to Art. 42 (3) of the Law of December 17, 2010, such products must not entail any leverage effect. The underlying of the embedded derivatives contained in such a structured product can only consist in instruments listed in section 1 of Chapter 6, “Investment Restrictions”. As well as satisfying the regulations on risk spreading, the underlying baskets and underlying indices must be sufficiently diversified. Derivatives In accordance with section 1 g) of Chapter 6, “Investment Restrictions”, the Subfund may invest up to 100% of its Net Asset Value in derivatives. The overall currency exposure will be predominantly hedged back in the Reference Currency of the Subfund by using forward contracts, futures and options. Subject to the daily mark‐to‐market valuation and any resulting adjustments, the Subfund may engage in active currency allocation using forward contracts, futures and options. Derivatives may also be used in the interest of the efficient management of the portfolio or for hedging purposes, provided the limits set out in Chapter 6, “Investment Restrictions” are observed. For managing the volatility of the securities portfolio or for hedging the portfolio, the Subfund may also make use of financial derivatives or certificates based on a volatility index that satisfies the requirements of section 4 g) of Chapter 6 “Investment Restrictions”. The indices on which such derivatives are based shall be chosen in accordance with Art. 9 of the Grand‐Ducal Decree of February 8, 2008. The core investments of any given Subfund must not exceed 100% of its assets. Global Exposure The global exposure of the Subfund will be calculated on the basis of the commitment approach. Risk Information Investors should note that investments in Target Funds generally incur costs both at the Subfund level and at the level of the Target Funds. Furthermore, the value of the units in the Target Funds may be affected by currency fluctuations, currency exchange transactions, tax regulations (including the levying of withholding tax) and any other economic or political factors or changes in the countries in which the Target Fund is invested, along with the aforementioned risks associated with exposure to the emerging markets. Investors should also note that the Target Funds’ investments may be selected without regard to capitalization, sector or geographical location. This may lead at least to a concentration in geographical or sector terms. At the same time, performance may be impaired by the broad risk diversification across a number of Target Funds. The investment of the assets of the Subfund in units of Target Funds entails a risk that the redemption of the units is subject to restrictions, with the consequence that such investments may be less liquid than other types of investment as the case may be.
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
42
In relation to the Subfund’s investment universe, investors should note that there are no restrictions in terms of either the size of issuers or of the issuers’ credit ratings; consequently, investors should refer to the corresponding risks specified in Chapter 7, “Risk Factors”. Potential investors should note that, in addition to the risks specified in Chapter 7, “Risk Factors”, the prospective returns generated by securities of issuers in the emerging markets are generally higher than those generated by similar securities issued by equivalent issuers in the developed, industrialized countries. Emerging countries and developing markets are defined as countries which are not classified by the World Bank as high income countries. In addition, high income countries which are included in an emerging market financial index of a leading service provider may also be considered as emerging countries and developing markets if deemed appropriate by the Management Company in the context of a Sub‐Fund's investment universe. Since the Subfund may invest in debt instruments in the non‐investment grade sector, the underlying debt instruments may present a greater risk in terms of downgrading or may exhibit a greater default risk than debt instruments of first‐class issuers. The higher return should be viewed as compensation for the greater degree of risk attached to the underlying debt instruments and the Subfunds’ higher volatility. In addition to the risks entailed by traditional forms of investments (market, credit and liquidity risks), alternative investments (especially hedge funds) entail a number of specific risks due on the one hand to the fact that their investment strategy may involve the short sale of securities and, on the other hand, to the fact that a leverage effect is created by borrowing and by the use of derivatives. Owing to this leverage, the value of a Subfund’s assets rises faster than the associated costs (specifically the interest on the loans and the premiums on the derivatives used) when the capital gains on the investments acquired with the help of leverage effects are greater. When the prices fall, however, this effect is offset by a correspondingly rapid decrease in the fund’s assets. The use of derivative instruments and especially of short selling can, in extreme cases, lead to an investment in an individual Target Fund being written off altogether. Most hedge funds are registered in countries in which the legal framework, and especially supervision by the authorities, either does not exist or does not correspond to the standards applied in western Europe or other comparable countries. The success of hedge funds depends in particular on the competence of the fund managers and the suitability of the infrastructure available to them. Investments in product, commodity or precious metal indices differ from traditional investments and entail additional risk potential and higher volatility. The assets of the Subfund are subject to the usual fluctuations experienced by the sector in question. The value of the products, commodities or precious metals is affected, for example, by fluctuations in the commodity markets, by natural or medical emergencies, by economic, political or regulatory developments around the world, and – in the case of derivatives and structured products – also by changes in interest rates. The volatility of commodity indices and historical financial market scenarios are not a guarantee of future trends. The risks entailed in alternative investments are considerable, so exposure to these investments increases the potential for losses accordingly. The Management Company, however, will seek to minimize such risks by a strict selection of investments acquired and by an appropriate spreading of risk. The distributions or dividends generated by the Company’s investments for the account of the Subfund may be subject to non‐recoverable withholding tax. This may impair the Subfund’s income. Furthermore, capital gains accruing to the Company for the account of the Subfund may be subject to capital gains tax and to repatriation limitations. The use of derivatives also involves specific risks. Accordingly, potential investors are referred in particular to the risks associated with derivatives set out in Chapter 7, “Risk Factors”. In addition, potential investors should note that various money flow risks arising from adjustments necessitated by subscriptions and redemptions may reduce the targeted return. Moreover, potential investors should be aware of the fact that the counterparty risk cannot be eliminated completely in derivative strategies. In case of default of the counterparty, the investor returns may be reduced. However, when it has been considered as appropriate, the Subfund will endeavour to mitigate this
risk by the receipt of financial collateral given as guarantees or minimize this risk by taking various diversification measures. Investments in the Subfund are subject to price fluctuations. There can therefore be no guarantee that the investment objective will be met. Investor Profile The Subfund is suitable for investors who are interested in achieving both investment returns and capital growth over a long‐term investment horizon. Costs Associated with Investment in Target Funds The Management Company shall be entitled to a fee in return for managing the Subfund. The amount, calculation and payment of this fee for the Subfund is set out in Chapter 2, “Summary of Share Classes”. Besides the expenses incurred by the Management Company in managing the Subfund, a management fee shall be indirectly deducted from the assets of the Subfund in respect of the Target Funds contained therein. Contrary to what is stated in section 5 of Chapter 6, „Investment Restrictions“, the Management Company may also charge a management fee for investments in Target Funds designated as Affiliated Funds in the aforementioned provision. The cumulative management fee at Subfund and Target Fund level shall not exceed 3.00%. Investment Manager The Management Company has appointed Credit Suisse AG, Zurich, as Investment Manager to assist with the management of the Subfund. Subscription, Redemption and Conversion of Shares Subscription, redemption and conversion applications must be received by the Central Administration or a Distributor by 3 p.m. (Central European Time) two Banking Days prior to the Valuation Day (as defined above). Subscription, redemption or conversion applications received after this cutoff point shall be deemed to have been duly received on the next following Banking Day. Payment of the issue price must be effected within two Banking Days after the Valuation Day on which the issue price of the Shares was determined. Payment of the redemption price of the Shares shall be made within two Banking Days following calculation of this price. Adjustment of the Net Asset Value (Single Swing Pricing) The Net Asset Value calculated in accordance with Chapter 8, “Net Asset Value” will be increased by up to a maximum of 2% per Share in the event of a net surplus of subscription applications or reduced by up to a maxi‐mum of 2% per Share in the event of a net surplus of redemption applications in respect of the applications received on the respective Valuation Day. Under exceptional circumstances the Company may, in the interest of Shareholders, decide to increase the maximum swing factor indicated above. In such case the Company would inform the investors in accordance with Chapter 14, “Information for Shareholders”. Credit Suisse SICAV One (Lux) IndexSelection Income Oriented (Sfr) The currency mentioned in the Subfund’s names is merely the Reference Currency in which the performance and Net Asset Value of the Subfund is calculated, and is not necessarily the Subfund’s investment currency. Investments may be denominated in any currency. Investment Objective Within the Subfund, the aim is to generate as much income as possible in the respective Reference Currency – while taking due account of the principle of risk diversification and the liquidity of the assets – by investing in the asset classes described below and focusing on current income.
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
43
Investment Principles The Subfund invests primarily in a broadly diversified portfolio of index‐linked investment instruments (over 50%) and investment funds (“Target Funds”), including exchange traded funds, structured products and derivatives, and all the investment instruments listed in section 1 of Chapter 6, “Investment Restrictions”, subject to the restrictions specified in said Chapter. Asset Allocation The total exposure to the asset classes listed below, whether direct or indirect, must not exceed the limits specified below (in % of the Subfund’s net assets): Asset class Bandwidth Liquidity 0–50% Fixed‐interest securities 35–85% Equities 15–35% Alternative investments 0–20%
In compliance with the provisions of Chapter 6, “Investment Restrictions”, the exposure to liquid investments will be achieved directly through investments in cash, bank deposits, fixed term deposits, money market instruments which are compliant with the CESR Guidelines on a common definition of European money market funds (CESR/10‐049) or indirectly through Target Funds investing in those instruments. In compliance with the provisions of Chapter 6, “Investment Restrictions”, the exposure to alternative investments will be achieved indirectly through the use of one or more of the instruments listed below. The exposure to alternative investments may be achieved through investments in commodities (including the individual categories of commodities), real estate, natural resources, private equity, hedge funds and precious metals or any combination of these sub‐classes. If the alternative investments are to be tracked via derivatives, this must be done using derivatives which have a financial index as their underlying. Investment Instruments To achieve its investment objective, the Subfund may – subject to the aforementioned investment principles – use any of the instruments listed in section 1 of Chapter 6, “Investment Restrictions”; these may include, but not be limited to, the instruments specified below: Target Funds Contrary to what is stated in section 5 of Chapter 6, “Investment Restrictions”, the Subfunds may invest up to 100% of its Net Asset Value in units of other UCITSs and/or other UCIs pursuant to section 1 e) of Chapter 6, “Investment Restrictions”. Structured Products The Subfund may invest up to 100% of its net assets in structured products (certificates, notes) that are sufficiently liquid, are issued by first‐class banks (or by issuers that offer investor protection comparable to that provided by first‐class banks), and facilitate exposure to the asset classes specified above (including currencies). These structured products must qualify as securities pursuant to Art. 41 of the Law of December 17, 2010. These structured products must be valued regularly and transparently on the basis of independent sources. Unless these structured products contain embedded derivatives pursuant to Art. 42 (3) of the Law of December 17, 2010, such products must not entail any leverage effect. The underlying of the embedded derivatives contained in such a structured products can only consist in instruments listed in section 1 of Chapter 6, “Investment Restrictions”. As well as satisfying the regulations on risk spreading, the underlying baskets and underlying indices must be sufficiently diversified. Derivatives In accordance with section 1 g) of Chapter 6, “Investment Restrictions”, the Subfunds may invest up to 100% of its Net Asset Value in derivatives. Subject to the daily mark‐to‐market valuation and any resulting adjustments, the Subfund may engage in active currency allocation using forward contracts, futures and options.
The overall currency exposure will be predominantly hedged back in the Reference Currency of the Subfund by using forward contracts, futures and options. Derivatives may also be used in the interest of the efficient management of the portfolio or for hedging purposes, provided the limits set out in Chapter 6, “Investment Restrictions” are observed. For managing the volatility of the securities portfolio or for hedging the portfolio, the Subfund may also make use of financial derivatives or certificates based on a volatility index that satisfies the requirements of section 4 g) of Chapter 6 “Investment Restrictions”. The indices on which such derivatives are based shall be chosen in accordance with Art. 9 of the Grand‐Ducal Decree of February 8, 2008. The core investments of any given Subfund must not exceed 100% of its assets. Global Exposure The global exposure of the Subfund will be calculated on the basis of the commitment approach. Risk Information Investors should note that investments in Target Funds generally incur costs both at the Subfund level and at the level of the Target Funds. Furthermore, the value of the units in the Target Funds may be affected by currency fluctuations, currency exchange transactions, tax regulations (including the levying of withholding tax) and any other economic or political factors or changes in the countries in which the Target Fund is invested, along with the aforementioned risks associated with exposure to the emerging markets. Investors should also note that the Target Funds’ investments may be selected without regard to capitalization, sector or geographical location. This may lead at least to a concentration in geographical or sector terms. At the same time, performance may be impaired by the broad risk diversification across a number of Target Funds. The investment of the assets of the Subfund in units of Target Funds entails a risk that the redemption of the units is subject to restrictions, with the consequence that such investments may be less liquid than other types of investment as the case may be. In relation to the Subfund’s investment universe, investors should note that there are no restrictions in terms of either the size of issuers or of the issuers’ credit ratings; consequently, investors should refer to the corresponding risks specified in Chapter 7, “Risk Factors”. Potential investors should note that, in addition to the risks specified in Chapter 7, “Risk Factors”, the prospective returns generated by securities of issuers in the emerging markets are generally higher than those generated by similar securities issued by equivalent issuers in the developed, industrialized countries. Emerging countries and developing markets are defined as countries which are not classified by the World Bank as high income countries. In addition, high income countries which are included in an emerging market financial index of a leading service provider may also be considered as emerging countries and developing markets if deemed appropriate by the Management Company in the context of a Sub‐Fund's investment universe.Since the Subfund may invest in debt instruments in the non‐investment grade sector, the underlying debt instruments may present a greater risk in terms of downgrading or may exhibit a greater default risk than debt instruments of first‐class issuers. The higher return should be viewed as compensation for the greater degree of risk attached to the underlying debt instruments and the Subfund’s higher volatility. In addition to the risks entailed by traditional forms of investments (market, credit and liquidity risks), alternative investments (especially hedge funds) entail a number of specific risks due on the one hand to the fact that their investment strategy may involve the short sale of securities and, on the other hand, to the fact that a leverage effect is created by borrowing and by the use of derivatives. Owing to this leverage, the value of a Subfund’s assets rises faster than the associated costs (specifically the interest on the loans and the premiums on the derivatives used) when the capital gains on the investments acquired with the help of leverage effects are greater. When the prices fall, however, this effect is offset by a correspondingly rapid decrease in the fund’s assets. The use of derivative instruments and especially of short selling can in extreme cases lead to an investment in an individual Target Fund being written off altogether.
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
44
Most hedge funds are registered in countries in which the legal framework, and especially supervision by the authorities, either does not exist or does not correspond to the standards applied in western Europe or other comparable countries. The success of hedge funds depends in particular on the competence of the fund managers and the suitability of the infrastructure available to them. Investments in product, commodity or precious metal indices differ from traditional investments and entail additional risk potential and higher volatility. The assets of the Subfund are subject to the usual fluctuations experienced by the sector in question. The value of the products, commodities or precious metals is affected, for example, by fluctuations in the commodity markets, by natural or medical emergencies, by economic, political or regulatory developments around the world, and – in the case of derivatives and structured products – also by changes in interest rates. The volatility of commodity indices and historical financial market scenarios are not a guarantee of future trends. The risks entailed in alternative investments are considerable, so exposure to these investments increases the potential for losses accordingly. The Management Company, however, will seek to minimize such risks by a strict selection of investments acquired and by an appropriate spreading of risk. The distributions or dividends generated by the Company’s investments for the account of the Subfund may be subject to non‐recoverable withholding tax. This may impair the Subfund’s income. Furthermore, capital gains accruing to the Company for the account of the Subfund may be subject to capital gains tax and to repatriation limitations. The use of derivatives also involves specific risks. Accordingly, potential investors are referred in particular to the risks associated with derivatives set out in Chapter 7, “Risk Factors”. In addition, potential investors should note that various money flow risks arising from adjustments necessitated by subscriptions and redemptions may reduce the targeted return. Moreover, potential investors should be aware of the fact that the counterparty risk cannot be eliminated completely in derivative strategies. In case of default of the counterparty, the investor returns may be reduced. However, when it has been considered as appropriate, the Subund will endeavour to mitigate this risk by the receipt of financial collateral given as guarantees or minimize this risk by taking various diversification measures. Investments in the Subfund are subject to price fluctuations. There can therefore be no guarantee that the investment objective will be met. Investor Profile The Subfund is suitable for security‐oriented investors who are interested in earning an appropriate return. Costs Associated with Investment in Target Funds The Management Company shall be entitled to a fee in return for managing the Subfund. The amount, calculation and payment of this fee for the Subfund is set out in Chapter 2, “Summary of Share Classes”. Besides the expenses incurred by the Management Company in managing the Subfund, a management fee shall be indirectly deducted from the assets of the Subfund in respect of the Target Funds contained therein. Contrary to what is stated in section 5 of Chapter 6, „Investment Restrictions“, the Management Company may also charge a management fee for investments in Target Funds designated as Affiliated Funds in the aforementioned provision. The cumulative management fee at Subfund and Target Fund level shall not exceed 3.00%. Investment Manager The Management Company has appointed Credit Suisse AG, Zurich, as Investment Manager to assist with the management of the Subfund. Subscription, Redemption and Conversion of Shares Subscription, redemption and conversion applications must be received by the Central Administration or a Distributor by 3 p.m. (Central European Time) two Banking Days prior to the Valuation Day (as defined above). Subscription, redemption or conversion applications received after this cutoff point shall be deemed to have been duly received on the next following Banking Day.
Payment of the issue price must be effected within two Banking Days after the Valuation Day on which the issue price of the shares was determined. Payment of the redemption price of the shares shall be made within two Banking Days following calculation of this price. Adjustment of the Net Asset Value (Single Swing Pricing) The Net Asset Value calculated in accordance with Chapter 8, “Net Asset Value” will be increased by up to a maximum of 2% per Share in the event of a net surplus of subscription applications or reduced by up to a maxi‐mum of 2% per Share in the event of a net surplus of redemption applications in respect of the applications received on the respective Valuation Day. Under exceptional circumstances the Company may, in the interest of Shareholders, decide to increase the maximum swing factor indicated above. In such case the Company would inform the investors in accordance with Chapter 14, “Information for Shareholders”. Credit Suisse SICAV One (Lux) Liquid Alternative Beta Investment Objective The Investment Objective of the Subfund is to manage its assets in accordance with the Liquid Alternative Beta strategy (the “LAB Strategy”). The LAB Strategy itself is a mechanism that seeks to achieve a similar risk/return profile as that of the Credit Suisse Hedge Fund Index (the “CS Hedge Fund Index”), a market leading hedge fund industry benchmark which tracks the performance of approximately 450 funds. The LAB Strategy consists of a theoretically calculated benchmark (the “Liquid Alternative Beta Index”) and aims to track the CS Hedge Fund Index through a dynamic basket of liquid, tradable financial instruments, which are weighted in accordance with a proprietary algorithm. The Liquid Alternative Beta Index aims to track the CS Hedge Fund Index without having actual exposure to individual hedge fund managers. The Liquid Alternative Beta Index is calculated by Credit Suisse Asset Management LLC (“CSAM LLC”) and serves as the aggregate index for the Liquid Alternative Beta Long/Short Liquid Index, the Liquid Alternative Beta Event Driven Liquid Index and the Liquid Alternative Beta Global Strategies Liquid Index. The individual strategy indices are weighted in the Liquid Alternative Beta Index in accordance with their respective weight within the CS Hedge Fund Index. Within the individual strategies CSAM LLC seeks to identify relevant risk factors that drive the strategy return and identifies liquid, tradable securities that capture the investment profile of these risk factors. The Liquid Alternative Beta Index relies on a proprietary mechanism to weight the factors appropriately in order to replicate the performance of the CS Hedge Fund Index. The Liquid Alternative Beta Index ensures transparency through publicly available, daily valuations on the index website, www.credit‐suisse.com/lab. CSAM LLC has published the Liquid Alternative Beta Index since its inception in January 2010. Further information on the CS Hedge Fund Index is available on www.hedgeindex.com. The tracking error between the Liquid Alternative Beta Index and the CS Hedge Fund Index is 4.2% whilst the tracking error between the performance of the Subfund and the performance of the Liquid Alternative Beta Index is expected to be minor and to result only from trading costs, management fees and other replication constraints (e.g., size limitations applicable for trade orders). Investment Principles In order to achieve the Investment Objective, the Subfund will: 1. invest in financial instruments comprising (list not exhaustive) (i)
equities listed on a stock exchange or dealt on a regulated market and equity‐type securities including equity index futures and equity index options (ii) debt securities listed on a stock exchange or dealt on a regulated market issued by financial or credit institutions or corporate issuers or sovereign states that are OECD members states and/or supranational; (iii) exchange‐traded funds (ETF) (iv) cash and cash equivalents; (v) currencies, including currency forwards and futures; and (vi) financial derivative instruments which are dealt in on a regulated market or over‐the‐counter including CDX, swaps on equity baskets, swaps on various
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
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indices (high yield, bond, equity, and commodity indices), interest rate/bond futures, equity/FX index futures, FX forwards and options on equity index.. All investments will be made and all investment techniques will be used in accordance with the investment restrictions as laid down in Chapter 6, “Investment Restrictions”. The above financial instruments will be selected and weighted in accordance with an algorithm that aims to approximate the aggregate returns of the universe of hedge funds, as represented by the CS Hedge Fund Index. The quantitative model uses various input parameters such as the historical returns and volatility from the universe of hedge funds, and uses a multiple sequential regression and other statistical estimation techniques to identify widely used financial indices that are UCITS eligible and/or financial instruments that will replicate on an aggregate basis the performance of the CS Hedge Fund Index. The counterparties to any OTC financial derivative transactions, such as swap contracts are first class financial institutions specialised in this type of transaction.
2. resort to some systematic trading strategies. The changing characteristics of the universe of hedge funds are accounted for through (i) monthly rebalancings of the Subfund’s investments to ensure the continued representation of the risk/return characteristics of the universe of hedge funds which is represented by the CS Hedge Fund Index, which itself is rebalanced on a monthly basis, and (ii) daily rebalancings of the Subfund’s investments for the systematic trading strategies component. Global Exposure The methodology used in order to calculate the global exposure resulting from the use of financial derivative instruments is the absolute VaR approach in accordance with the CSSF Circular 11/512. Under normal market circumstances the expected level of leverage will be approximately 1.85 times the Subfund’s Net Asset Value. In accordance with the regulatory requirements the expected level of leverage is calculated by way of the sum of the notionals of the derivatives. The sum of the notionals takes into account the absolute values of notionals of all the financial derivative instruments used by the Subfund. Henceforth the expected level of leverage is an indicator of the intensity of the use of financial derivative instruments within the Subfund and is not an indicator of the investment risks in relation to those derivatives because it does not take into account any netting or hedging effects. In fact derivatives used to offset the risks linked to other transactions are contributing to an increase of the leverage determined via the sum of the notionals. For an indicator of the overall risk of the Subfund the investor should refer to the information in the KIID. The level of leverage may vary over time and it may be higher than the expected level. Risk Information The Subfund is not an index tracker fund in the sense that it does not aim to invest into every constituent of the Liquid Alternative Beta Index (with the same weightings as those of the constituents of the Liquid Alternative Beta Index) or to gain a one‐to‐one exposure to the Liquid Alternative Beta Index through a performance swap although the Investment Objective of the Subfund is to try to minimise the tracking error with the Liquid Alternative Beta Index. The Liquid Alternative Beta Index shall be used rather as a benchmark index by the Subfund. Similarly, there may be a significant tracking error between the performance of the Liquid Alternative Beta Index and the performance of the CS Hedge Fund Index although the objective of the Liquid Alternative Beta Index is to aim for a high positive correlation with the CS Hedge Fund Index. The Subfund seeks to provide hedge fund‐like returns within the UCITS framework, without direct or indirect investments in hedge funds where hedge funds typically invest on both long and short sides of markets, generally focusing on diversifying or hedging across various asset classes and regions or market capitalizations and where hedge fund investment managers generally have the flexibility to shift from different exposures and instruments and gain exposure to volatile, complex, or illiquid instruments while using leveraging techniques, including by using complex financial derivative instruments and/or borrowings. Although the investment policy of the Subfund does allow investments in a broad range of assets as described above under “Investment
Principles”, there may be circumstances where the Subfund will be largely invested in a restricted portfolio of investments, including one or several diversified financial indices, while satisfying at any time the UCITS investments restrictions as described under chapter 6 “Investment Restrictions” of the general part of the Prospectus. Hedge funds – in spite of their name – do not necessarily have anything to do with hedging. Hedge funds comprising the Underlying Index are non‐traditional funds, which can be described as forms of investment funds, companies and partnerships that use a wide variety of trading strategies including position taking in a range of markets and which employ an assortment of trading techniques and instruments, often including short‐selling, derivatives and significant leverage. Three of the major risks in investing in hedge funds may, therefore, be their extensive use of short selling, derivatives and leverage. Moreover, potential investors should be aware of the fact that the counterparty risk cannot be eliminated completely in derivative strategies. In case of default of the counterparty, the investor returns may be reduced. However, when it has been considered as appropriate, the Subfund will endeavour to mitigate this risk by the receipt of financial collateral given as guarantees or minimize this risk by taking various diversification measures. Further information on the risk factors applicable to this Subfund and the Company generally is set out in Chapter 7, “Risk Factors”. Investor Profile The Subfund is suitable for long‐term investors wishing to participate in a diversified market barometer of the hedge fund universe and willing to bear the risks associated with an exposure to replicated hedge fund strategies. The Subfund is only appropriate for investment from Sophisticated Investors. A “Sophisticated Investor” means an investor who: (a) has knowledge of, and investment experience in, financial
products that (i) use complex derivatives on a variety of instruments and indices and (ii) may employ such derivative strategies to achieve the Investment Objective of this Subfund; and
(b) understands and can evaluate the strategy, characteristics and risks of the Subfund in order to make an informed investment decision.
Investment Manager The Management Company has appointed Credit Suisse Asset Management, LLC, One Madison Avenue, New York, NY 10010, USA, as Investment Manager to assist with the management of this Subfund. Net Asset Value Contrary to what is stated in Chapter 8, “Net Asset Value”, a Banking Day is defined for the Subfund as being a day on which banks are normally open for business in Luxembourg and New York (a “Banking Day”). The Net Asset Value of the Shares of the Subfund is calculated in the Subfund’s Reference Currency on each such Banking Day (each of them being referred to as a “Valuation Day” for the purpose of the present section). Further information A complete description of the Liquid Alternative Beta Index is available to investors upon request at the registered office of the Management Company. Credit Suisse SICAV One (Lux) Liquid Event Driven Investment Objective The Investment Objective of the Subfund is to manage its assets in accordance with the Event Driven Liquid strategy (the “Event Driven Liquid Strategy”). The Event Driven Liquid Strategy itself is a mechanism that seeks to achieve a similar risk/return profile as that of the Credit Suisse Event Driven Hedge Fund Index (the “CS Event Driven Hedge Fund Index”), a market leading hedge fund industry benchmark which tracks the performance of approximately 70 funds. The Event Driven Liquid Strategy consists of a theoretically calculated benchmark (the “LAB Event Driven Liquid Index”) and aims to track the
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
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CS Event Driven Hedge Fund Index through a dynamic basket of liquid, tradable financial instruments, which are weighted in accordance with a proprietary algorithm. The LAB Event Driven Liquid Index aims to track the CS Event Driven Hedge Fund Index without having actual exposure to individual hedge fund managers. The LAB Event Driven Liquid Index is calculated by CSAM LLC. Within the individual strategies CSAM LLC seeks to identify relevant risk factors that drive the strategy’s return and identifies liquid, tradable securities that capture the investment profile of these risk factors. The LAB Event Driven Liquid Index then relies on a proprietary mechanism to weight the factors appropriately in order to replicate the performance of the CS Event Driven Hedge Fund Index. The LAB Event Driven Liquid Index ensures transparency through publicly available, daily valuations on the index website, www.credit‐suisse.com/lab. CSAM LLC has calculated the LAB Event Driven Liquid Index since its inception in January 2010. Further information on the CS Even Driven Hedge Fund Index is available on www.hedgeindex.com. The tracking error between the LAB Event Driven Liquid Index and the CS Event Driven Hedge Fund Index is 5.9% whilst the tracking error between the performance of the Subfund and the performance of the LAB Event Driven Liquid Index is expected to be minor and to result only from trading costs, management fees and other replication constraints (e.g., size limitations applicable for trade orders). Investment Principles In order to achieve the Investment Objective, the Subfund will: 1. invest in financial instruments comprising (list not exhaustive) (i)
equities listed on a stock exchange or dealt on a regulated market and equity‐type securities including equity index futures and equity index options (ii) debt securities listed on a stock exchange or dealt on a regulated market issued by financial or credit institutions or corporate issuers or sovereign states that are OECD members states and/or supranational; (iii) exchange‐traded funds (ETF) (iv) cash and cash equivalents; (v) currencies, including currency forwards and futures; and (vi) financial derivative instruments which are dealt in on a regulated market or over‐the‐counter including CDX, swaps on high yield index, swaps on equity baskets, swaps on various equity indices, options on equity index and equity index futures.. All investments will be made and all investment techniques will be used in accordance with the investment restrictions as laid down in Chapter 6, “Investment Restrictions”. The above financial instruments will be selected and weighted in accordance with an algorithm that aims to approximate the aggregate returns of all sectors of the CS Event Driven Hedge Fund Index. The quantitative model uses various input parameters such as the historical returns and volatility from the universe of hedge funds, and uses a multiple sequential regression and other statistical estimation techniques to identify widely used financial indices that are UCITS eligible and/or financial instruments that will replicate on an aggregate basis the performance of the CS Event Driven Hedge Fund Index.
2. The counterparties to any OTC financial derivative transactions, such as swap contracts are first class financial institutions specialised in this type of transaction.resort to some systematic trading strategies.
The changing characteristics of the universe of hedge funds are accounted for through (i) monthly rebalancings of the Subfund’s investments to ensure the continued representation of the risk/return characteristics of the universe of hedge funds which is represented by the CS Event Driven Hedge Fund Index, which itself is rebalanced on a monthly basis, and (ii) daily rebalancings of the Subfund’s investments for the systematic trading strategies component. Global Exposure The methodology used in order to calculate the global exposure resulting from the use of financial derivative instruments is the absolute VaR approach in accordance with the CSSF Circular 11/512. Under normal market circumstances the expected level of leverage will be approximately 2.34 times the Subfund’s Net Asset Value. In accordance with the regulatory requirements the expected level of leverage is calculated by way of the sum of the notionals of the derivatives. The sum
of the notionals takes into account the absolute values of notionals of all the financial derivative instruments used by the Subfund. Henceforth the expected level of leverage is an indicator of the intensity of the use of financial derivative instruments within the Subfund and is not an indicator of the investment risks in relation to those derivatives because it does not take into account any netting or hedging effects. In fact derivatives used to offset the risks linked to other transactions are contributing to an increase of the leverage determined via the sum of the notionals. For an indicator of the overall risk of the Subfund the investor should refer to the information in the KIID. The level of leverage may vary over time and it may be higher than the expected level. Risk Information The Subfund is not an index tracker fund in the sense that it does not aim to invest into every constituent of the LAB Event Driven Liquid Index (with the same weightings as those of the constituents of the LAB Event Driven Liquid Index) or to gain a one‐to‐one exposure to the LAB Event Driven Liquid Index through a performance swap although the Investment Objective of the Subfund is to try to minimise the tracking error with the LAB Event Driven Liquid Index. The LAB Event Driven Liquid Index shall be used rather as a benchmark index by the Subfund. Similarly, there may be a significant tracking error between the performance of the LAB Event Driven Liquid Index and the performance of the CS Event Driven Hedge Fund Index although the objective of the LAB Event Driven Liquid Index is to aim for a high positive correlation with the CS Event Driven Hedge Fund Index. Under certain circumstances, the value of the Subfund’s assets may be largely linked to the performance of the LAB Event Driven Liquid Index, which may rise and fall. Investors should note that the value of their investment could fall as well as rise and they should accept that there is no guarantee that they will recover their initial investment. Investors may very well lose the whole of their initial investment. The Subfund seeks to provide event driven hedge fund‐like returns within the UCITS framework, without direct or indirect investments in event driven hedge funds where event driven hedge funds typically seek to take advantage from potential mispricing of securities related to a specific corporate or market event and where hedge fund investment managers generally have the flexibility to shift from different exposures and instruments and gain exposure to volatile, complex, or illiquid instruments while using leveraging techniques, including by using complex financial derivative instruments and/or borrowings. Although the investment policy of the Subfund does allow investments in a broad range of assets as described above under “Investment Principles”, there may be circumstances where the Subfund will be largely invested in a restricted portfolio of investments, including one or several diversified financial indices, while satisfying at any time the UCITS investments restrictions as described under chapter 6 “Investment Restrictions” of the general part of the Prospectus. Hedge funds – in spite of their name – do not necessarily have anything to do with hedging. Hedge funds comprising the Underlying Index are non‐traditional funds, which can be described as forms of investment funds, companies and partnerships that use a wide variety of trading strategies including position taking in a range of markets and which employ an assortment of trading techniques and instruments, often including short‐selling, derivatives and significant leverage. Three of the major risks in investing in hedge funds may, therefore, be their extensive use of short selling, derivatives and leverage. Moreover, potential investors should be aware of the fact that the counterparty risk cannot be eliminated completely in derivative strategies. In case of default of the counterparty, the investor returns may be reduced. However, when it has been considered as appropriate, the Subfund will endeavour to mitigate this risk by the receipt of financial collateral given as guarantees or minimize this risk by taking various diversification measures. Further information on the risk factors applicable to this Subfund and the Company generally is set out in Chapter 7, “Risk Factors”. Investor Profile The Subfund is suitable for long‐term investors wishing to participate in a diversified market barometer of the hedge fund universe and willing to bear the risks associated with an exposure to replicated hedge fund strategies.
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
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The Subfund is only appropriate for investment from Sophisticated Investors. A “Sophisticated Investor” means an investor who: (a) has knowledge of, and investment experience in, financial
products that (i) use complex derivatives on a variety of instruments and indices and (ii) may employ such derivative strategies to achieve the Investment Objective of this Subfund; and
(b) understands and can evaluate the strategy, characteristics and risks of the Subfund in order to make an informed investment decision.
Investment Manager The Management Company has appointed Credit Suisse Asset Management, LLC, One Madison Avenue, New York, NY 10010, USA, as Investment Manager to assist with the management of this Subfund. Net Asset Value Contrary to what is stated in Chapter 8, “Net Asset Value”, a Banking Day is defined for the Subfund as being a day on which banks are normally open for business in Luxembourg and New York (a “Banking Day”). The Net Asset Value of the Shares of the Subfund is calculated in the Subfund’s Reference Currency on each such Banking Day (each of them being referred to as a “Valuation Day” for the purpose of the present section). Further information A complete description of the LAB Event Driven Liquid Index is available to investors upon request at the registered office of the Management Company. Credit Suisse SICAV One (Lux) Liquid Global Strategies Investment Objective The Investment Objective of the Subfund is to manage its assets in accordance with the Global Strategies Liquid strategy (the “Global Strategies Liquid Strategy”). The Global Strategies Liquid Strategy itself is a mechanism that seeks to achieve a similar risk/return profile as that of all sectors of the Credit Suisse Hedge Fund Index (the “CS Hedge Fund Index”), which are not defined as long/short equity or event driven. The CS Hedge Fund Index is a market leading hedge fund industry benchmark which tracks the performance of approximately 450 funds. The Global Strategies Liquid Strategy consists of a theoretically calculated benchmark (the “LAB Global Strategies Liquid Index”) and aims to track the Credit Suisse Global Strategies Hedge Fund Index (the “CS Global Strategies Hedge Fund Index”) through a dynamic basket of liquid, tradable financial instruments, which are weighted in accordance with a proprietary algorithm. The LAB Global Strategies Liquid Index aims to track the CS Global Strategies Hedge Fund Index without having actual exposure to individual hedge fund managers. The LAB Global Strategies Liquid Index is calculated by CSAM LLC. Within the individual strategies CSAM LLC seeks to identify relevant risk factors that drive the strategy’s return and identifies liquid, tradable securities that capture the investment profile of these risk factors. The LAB Global Strategies Liquid Index then relies on a proprietary mechanism to weight the factors appropriately in order to replicate the performance of the CS Global Strategies Hedge Fund Index. The LAB Global Strategies Liquid Index ensures transparency through publicly available, daily valuations on the index website, www.credit‐suisse.com/lab. CSAM LLC has calculated the LAB Global Strategies Liquid Index since its inception in April 2011. Further information on the CS Global Strategies Hedge Fund Index is available on www.hedgeindex.com. The tracking error between the LAB Global Strategies Liquid Index and the CS Global Strategies Hedge Fund Index is 5.1% whilst the tracking error between the performance of the Subfund and the performance of the LAB Global Strategies Liquid Index is expected to be minor and to result only from trading costs, management fees and other replication constraints (e.g., size limitations applicable for trade orders). Investment Principles In order to achieve the Investment Objective, the Subfund will:
1. invest in financial instruments comprising (list not exhaustive) (i) equities listed on a stock exchange or dealt on a regulated market and equity‐type securities including equity index futures and equity index options (ii) debt securities listed on a stock exchange or dealt on a regulated market issued by financial or credit institutions or corporate issuers or sovereign states that are OECD members states and/or supranational; (iii) exchange‐traded funds (ETF) (iv) cash and cash equivalents; (v) currencies, including currency forwards and futures; and (vi) financial derivative instruments which are dealt in on a regulated market or over‐the‐counter including CDX, swaps on equity baskets, swaps on various indices (high yield, bond, equity, and commodity indices), interest rate/bond futures, equity/FX index futures, FX forwards and options on equity index.. All investments will be made and all investment techniques will be used in accordance with the investment restrictions as laid down in Chapter 6, “Investment Restrictions”. The above financial instruments will be selected and weighted in accordance with an algorithm that aims to approximate the aggregate returns of all sectors of the CS Hedge Fund Index with the exception of the Long/Short Equity and Event Driven sectors. The quantitative model uses various input parameters such as the historical returns and volatility from the universe of hedge funds, and uses a multiple sequential regression and other statistical estimation techniques to identify widely used financial indices that are UCITS eligible and/or financial instruments that will replicate on an aggregate basis the performance of the CS Hedge Fund Index (with the exception of the Long/Short Equity and Event Driven sectors).
2. The counterparties to any OTC financial derivative transactions, such as swap contracts are first class financial institutions specialised in this type of transaction.resort to some systematic trading strategies.
The changing characteristics of the universe of hedge funds are accounted for through (i) monthly rebalancings of the Subfund’s investments to ensure the continued representation of the risk/return characteristics of the universe of hedge funds which is represented by the CS Hedge Fund Index, which itself is rebalanced on a monthly basis, and (ii) daily rebalancings of the Subfund’s investments for the systematic trading strategies component. Global Exposure The methodology used in order to calculate the global exposure resulting from the use of financial derivative instruments is the absolute VaR approach in accordance with the CSSF Circular 11/512. Under normal market circumstances the expected level of leverage will be approximately 4.04 times the Subfund’s Net Asset Value. In accordance with the regulatory requirements the expected level of leverage is calculated by way of the sum of the notionals of the derivatives. The sum of the notionals takes into account the absolute values of notionals of all the financial derivative instruments used by the Subfund. Henceforth the expected level of leverage is an indicator of the intensity of the use of financial derivative instruments within the Subfund and is not an indicator of the investment risks in relation to those derivatives because it does not take into account any netting or hedging effects. In fact derivatives used to offset the risks linked to other transactions are contributing to an increase of the leverage determined via the sum of the notionals. For an indicator of the overall risk of the Subfund the investor should refer to the information in the KIID. The level of leverage may vary over time and it may be higher than the expected level. Risk Information The Subfund is not an index tracker fund in the sense that it does not aim to invest into every constituent of the LAB Global Strategies Liquid Index (with the same weightings as those of the constituents of the LAB Global Strategies Liquid Index) or to gain a one‐to‐one exposure to the LAB Global Strategies Liquid Index through a performance swap although the Investment Objective of the Subfund is to try to minimise the tracking error with the LAB Global Strategies Liquid Index. The LAB Global Strategies Liquid Index shall be used rather as a benchmark index by the Subfund. Similarly, there may be a significant tracking error between the performance of the LAB Global Strategies Liquid Index and the performance of the CS Hedge Fund Index (with the exception of the
Credit Suisse SICAV One (Lux) Investment Company with Variable Capital under Luxembourg Law
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Long/Short Equity and Event Driven sectors) although the objective of the LAB Global Strategies Liquid Index is to aim for a high positive correlation with the CS Hedge Fund Index (with the exception of the Long/Short Equity and Event Driven sectors). The value of the Subfund’s assets is linked to the performance of the LAB Global Strategies Liquid Index, which may rise and fall. Investors should note that the value of their investment could fall as well as rise and they should accept that there is no guarantee that they will recover their initial investment. Investors may very well lose the whole of their initial investment. The Subfund seeks to provide hedge fund‐like returns within the UCITS framework, without direct or indirect investments in hedge funds where hedge funds typically invest across various asset classes and regions or market capitalizations and where hedge fund investment managers generally have the flexibility to shift from different exposures and instruments and gain exposure to volatile, complex, or illiquid instruments while using leveraging techniques, including by using complex financial derivative instruments and/or borrowings. Although the investment policy of the Subfund does allow investments in a broad range of assets as described above under “Investment Principles”, there may be circumstances where the Subfund will be largely invested in a restricted portfolio of investments, including one or several diversified financial indices, while satisfying at any time the UCITS investments restrictions as described under chapter 6 “Investment Restrictions” of the general part of the Prospectus. Hedge funds – in spite of their name – do not necessarily have anything to do with hedging. Hedge funds comprising the Underlying Index are non‐traditional funds, which can be described as forms of investment funds, companies and partnerships that use a wide variety of trading strategies including position taking in a range of markets and which employ an assortment of trading techniques and instruments, often including short‐selling, derivatives and significant leverage. Three of the major risks in investing in hedge funds may, therefore, be their extensive use of short selling, derivatives and leverage. Moreover, potential investors should be aware of the fact that the counterparty risk cannot be eliminated completely in derivative strategies. In case of default of the counterparty, the investor returns may be reduced. However, when it has been considered as appropriate, the Subfund will endeavour to mitigate this risk by the receipt of financial collateral given as guarantees or minimize this risk by taking various diversification measures Further information on the risk factors applicable to this Subfund and the Company generally is set out in Chapter 7, “Risk Factors”. Investor Profile The Subfund is suitable for long‐term investors wishing to participate in a diversified market barometer of the hedge fund universe and willing to bear the risks associated with an exposure to replicated hedge fund strategies. The Subfund is only appropriate for investment from Sophisticated Investors. A “Sophisticated Investor” means an investor who: (a) has knowledge of, and investment experience in, financial
products that (i) use complex derivatives on a variety of instruments and indices and (ii) may employ such derivative strategies to achieve the Investment Objective of this Subfund; and
(b) understands and can evaluate the strategy, characteristics and risks of the Subfund in order to make an informed investment decision.
Investment Manager The Management Company has appointed Credit Suisse Asset Management, LLC, One Madison Avenue, New York, NY 10010, USA, as Investment Manager to assist with the management of this Subfund. Net Asset Value Contrary to what is stated in Chapter 8, “Net Asset Value”, a Banking Day is defined for the Subfund as being a day on which banks are normally open for business in Luxembourg and New York (a “Banking Day”). The Net Asset Value of the Shares of the Subfund is calculated in the Subfund’s Reference Currency on each such Banking Day (each of them being referred to as a “Valuation Day” for the purpose of the present section).
Further information A complete description of the LAB Global Strategies Liquid Index is available to investors upon request at the registered office of the Management Company. Credit Suisse SICAV One (Lux) Liquid Long/Short Investment Objective The Investment Objective of the Subfund is to manage its assets in accordance with the Long/Short Liquid strategy (the “Long/Short Liquid Strategy”). The Long/Short Liquid Strategy itself is a mechanism that seeks to achieve a similar risk/return profile as that of the Credit Suisse Long/Short Equity Hedge Fund Index (the “CS Long/Short Equity Hedge Fund Index”), a market leading long/short equity hedge fund industry benchmark which tracks the performance of approximately 130 funds. The Long/Short Liquid strategy consists of a theoretically calculated benchmark (the “Long/Short Liquid Index”) and aims to track the CS Long/Short Equity Hedge Fund Index through a dynamic basket of liquid, tradable financial instruments, which are weighted in accordance with a proprietary algorithm. The Long/Short Liquid Index aims to track the CS Long/Short Equity Hedge Fund Index without having actual exposure to individual hedge fund managers. The Long/Short Liquid Index is calculated by CSAM LLC. Within the individual strategies CSAM LLC seeks to identify relevant risk factors that drive the strategy’s return and identifies liquid, tradable securities that capture the investment profile of these risk factors. The Long/Short Liquid Index then relies on a proprietary mechanism to weight the factors appropriately in order to replicate the performance of the CS Long/Short Equity Hedge Fund Index. The Long/Short Liquid Index ensures transparency through publicly available, daily valuations on the index website, www.credit‐suisse.com. CSAM LLC has calculated the Long/Short Liquid Index since its inception in May 2008. Further information on the CS Hedge Fund Index is available on www.hedgeindex.com. The tracking error between the Long/Short Liquid Index and the CS Long/Short Equity Hedge Fund Index is 4.6% whilst the tracking error between the performance of the Subfund and the performance of the Long/Short Liquid Index is expected to be minor and to result only from trading costs, management fees and other replication constraints (e.g., size limitations applicable for trade orders). Investment Principles In order to achieve the Investment Objective, the Subfund will invest in financial instruments comprising (list not exhaustive) (i) equities listed on a stock exchange or dealt on a regulated market and equity‐type securities including equity index futures and equity index options; (ii) exchange‐traded funds (ETF) (iii) cash and cash equivalents; (iv) currencies, including currency forwards and futures; and (v) financial derivative instruments which are dealt in on a regulated market or over‐the‐counter including swaps on equity baskets, swaps on various equity indices and equity index futures. The counterparties to any OTC financial derivative transactions, such as swap contracts are first class financial institutions specialised in this type of transaction. All investments will be made and all investment techniques will be used in accordance with the investment restrictions as laid down in Chapter 6, “Investment Restrictions”. The above financial instruments will be selected and weighted in accordance with an algorithm that aims to approximate the aggregate returns of all sectors of the CS Long/Short Equity Hedge Fund Index. The quantitative model uses various input parameters such as the historical returns and volatility from the universe of hedge funds, and uses a multiple sequential regression and other statistical estimation techniques to identify widely used financial indices that are UCITS eligible and/or financial instruments that will replicate on an aggregate basis the performance of the CS Long/Short Equity Hedge Fund Index. The changing characteristics of the universe of hedge funds are accounted for through monthly rebalancings of the Subfund’s investments to ensure the continued representation of the risk/return
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characteristics of the universe of hedge funds which is represented by the CS Long/Short Equity Hedge Fund Index, which itself is rebalanced on a monthly basis. Global Exposure The methodology used in order to calculate the global exposure resulting from the use of financial derivative instruments is the absolute VaR approach in accordance with the CSSF Circular 11/512. Under normal market circumstances the expected level of leverage will be approximately 1.97 times the Subfund’s Net Asset Value. In accordance with the regulatory requirements the expected level of leverage is calculated by way of the sum of the notionals of the derivatives. The sum of the notionals takes into account the absolute values of notionals of all the financial derivative instruments used by the Subfund. Henceforth the expected level of leverage is an indicator of the intensity of the use of financial derivative instruments within the Subfund and is not an indicator of the investment risks in relation to those derivatives because it does not take into account any netting or hedging effects. In fact derivatives used to offset the risks linked to other transactions are contributing to an increase of the leverage determined via the sum of the notionals. For an indicator of the overall risk of the Subfund the investor should refer to the information in the KIID. The level of leverage may vary over time and it may be higher than the expected level. Risk Information The Subfund is not an index tracker fund in the sense that it does not aim to invest into every constituent of the Long/Short Liquid Index (with the same weightings as those of the constituents of the Long/Short Liquid Index) or to gain a one‐to‐one exposure to the Long/Short Liquid Index through a performance swap although the Investment Objective of the Subfund is to try to minimise the tracking error with the Long/Short Liquid Index. The Long/Short Liquid Index shall be used rather as a benchmark index by the Subfund. Similarly, there may be a significant tracking error between the performance of the Long/Short Liquid Index and the performance of the CS Long/Short Equity Hedge Fund Index although the objective of the Long/Short Liquid Index is to aim for a high positive correlation with the CS Long/Short Equity Hedge Fund Index. The Subfund seeks to provide hedge fund‐like returns within the UCITS framework, without direct or indirect investment in long/short equity hedge funds where long/short equity hedge funds typically invest on both long and short sides of equity markets, generally focusing on diversifying or hedging across sectors, regions or market capitalizations and where long/short equity hedge fund investment managers generally have the flexibility to shift from value to growth, small to medium to large capitalization stocks; and net long to net short investments while building portfolios that are more concentrated than traditional long‐only equity funds. Although the investment policy of the Subfund does allow investments in a broad range of assets as described above under “Investment Principles”, there may be circumstances where the Subfund will be largely invested in a restricted portfolio of investments, including one or several diversified financial indices, while satisfying at any time the UCITS investments restrictions as described under chapter 6 “Investment Restrictions” of the general part of the Prospectus. Hedge funds – in spite of their name – do not necessarily have anything to do with hedging. Hedge funds comprising the Underlying Index are non‐traditional funds, which can be described as forms of investment funds, companies and partnerships that use a wide variety of trading strategies including position taking in a range of markets and which employ an assortment of trading techniques and instruments, often including short‐selling, derivatives and significant leverage. Three of the major risks in investing in hedge funds may, therefore, be their extensive use of short selling, derivatives and leverage. Moreover, potential investors should be aware of the fact that the counterparty risk cannot be eliminated completely in derivative strategies. In case of default of the counterparty, the investor returns may be reduced. However, when it has been considered as appropriate, the Subfund will endeavour to mitigate this risk by the receipt of financial collateral given as guarantees or minimize this risk by taking various diversification measures. Further information on the risk factors applicable to this Subfund and the Company generally is set out in Chapter 7, “Risk Factors”.
Investor Profile The Subfund is suitable for long‐term investors wishing to participate in a diversified market barometer of the hedge fund universe and willing to bear the risks associated with an exposure to replicated hedge fund strategies. The Subfund is only appropriate for investment from Sophisticated Investors. A “Sophisticated Investor” means an investor who: (a) has knowledge of, and investment experience in, financial
products that (i) use complex derivatives on a variety of instruments and indices and (ii) may employ such derivative strategies to achieve the Investment Objective of this Subfund; and
(b) understands and can evaluate the strategy, characteristics and risks of the Subfund in order to make an informed investment decision.
Investment Manager The Management Company has appointed Credit Suisse Asset Management, LLC, One Madison Avenue, New York, NY 10010, USA, as Investment Manager to assist with the management of this Subfund. Net Asset Value Contrary to what is stated in Chapter 8, “Net Asset Value”, a Banking Day is defined for the Subfund as being a day on which banks are normally open for business in Luxembourg and New York (a “Banking Day”). The Net Asset Value of the Shares of the Subfund is calculated in the Subfund’s Reference Currency on each such Banking Day (each of them being referred to as a “Valuation Day” for the purpose of the present section). Further information A complete description of the Long/Short Liquid Index is available to investors upon request at the registered office of the Management Company. Credit Suisse SICAV One (Lux) Small and Mid Cap Alpha Long/Short Investment Objective The aim of this Subfund is to achieve the maximum possible absolute return in the Reference Currency while keeping its correlation to the equity market as low as possible and its volatility well below the market’s. The Subfund will be managed actively with a long/short equity strategy within Europe. Income will be generated primarily by the choice of the long or short positions and, to a limited extent, by the net exposure to the equity markets; to implement the investment strategy applied, considerable use will be made of derivative financial instruments. Investment Principles To achieve its investment objective, the Subfund basically has a direct or synthetic exposure to selected equities or equity‐type securities issued primarily by small and medium‐sized European companies which are domiciled in or carry out the bulk of their business activities in the Europe region. The Europe region includes all EU and EFTA countries. Small and medium‐sized companies are defined as all companies with a market capitalization of less than 15 billion euros at the time the investment is made. Depending on the market assessment, the Subfund may, for tactical purposes, not have any exposure to equities. Under the terms of Article 41 (1) of the Law of December 17, 2010, the Subfund’s assets are invested worldwide, irrespective of currency but in accordance with the principle of risk diversification, in equities and equity‐type securities (global depository receipts [GDRs], profit‐sharing certificates, dividend rights certificates, participation certificates, etc.) or in bonds, notes, similar fixed or variable interest securities (incl. securities issued on a discount basis), money market instruments and time and sight deposits, convertible bonds, convertible notes, warrant bonds and warrants on securities as well as warrants of public, private and semi‐private issuers. Subject to the investment restrictions set out in Chapter 6, “Investment Restrictions”, section 3), part of these investments may,
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in the interest of the efficient management of the portfolio in terms of profit and loss profiles, be structured using derivatives such as forward contracts, swaps, futures and options. To augment the above‐mentioned investments and with a view to pursuing its investment strategy, the Subfund makes use of the derivatives described below: a) Purchase and sale of “contracts for difference” (CFDs) on equities
or equity indices within the investment universe described under “Investment Principles”. These indices shall be chosen in accordance with Art. 9 of the Grand‐Ducal Decree of February 8, 2008. In contrast to options, CFDs can be held for an indeterminate period; the value of CFDs is not dependent on the volatility of an underlying but is influenced primarily by changes in the underlying’s purchase price relative to its selling price.
b) Purchase and sale of put or call options on equities or equity indices within the investment universe described under “Investment Principles”.
c) Purchase and sale of futures contracts on equities or equity indices within the investment universe described under “Investment Principles”. The Subfund may only enter into futures contracts that are traded on a stock exchange or another regulated market open to the public that is domiciled in an OECD country. Up to a total of 100% of the Subfund’s assets may be invested in futures; this limit refers to the contract value of the futures contracts entered into. These indices shall be chosen in accordance with Art. 9 of the Grand‐Ducal Decree of February 8, 2008.
The aforementioned derivatives may be used in anticipation of either rising prices (long positions) or falling prices (short positions). The Subfund may engage in active currency allocation. In doing so, it may buy investment currencies on the basis of forward currency contracts up to the value of the associated net assets and may sell them against another investment currency for up to the same amount. The counterparties to any OTC financial derivative transactions, such as swap contracts are first class financial institutions specialised in this type of transaction. Global Exposure The global exposure of the Subfund will be calculated on the basis of the commitment approach. Risk Information In addition to the risks listed in Chapter 7, “Risk Factors”, potential investors should note that the Subfund pursues an investment strategy that can be extremely volatile and that the risk of loss is considerable. Investments in futures, options, CFDs and other derivatives may expose the Subfund to higher volatility than investments in traditional securities, and the risk of loss is greater. Investors should also note that the Subfund’s investments may be selected without regard to capitalization, sector, or geographical location. This may lead at least to a concentration in geographical or sector terms. Further information on the risk of equity investments and investments in emerging markets is set out in Chapter 7, “Risk Factors”. Emerging countries and developing markets are defined as countries which are not classified by the World Bank as high income countries. In addition, high income countries which are included in an emerging market financial index of a leading service provider may also be considered as emerging countries and developing markets if deemed appropriate by the Management Company in the context of a Sub‐Fund's investment universe. The financial instruments and techniques mentioned above allow the Subfund to exert leverage. As a result both positive and, in particular, negative price movements are greatly accentuated. The Subfund’s assets are subject to normal market fluctuations. There can therefore be no guarantee that the investment objective will be met. Moreover, potential investors should be aware of the fact that the counterparty risk cannot be eliminated completely in derivative strategies. In case of default of the counterparty, the investor returns may be reduced. However, when it has been considered as appropriate, the Subfund will endeavour to mitigate this risk by the receipt of financial collateral given as guarantees or minimize this risk by taking various diversification measures.
Investor Profile The Subfund is suitable for investors seeking absolute returns who want to make use of the opportunity to participate in the added value generated by the use of various derivative investment strategies based on equities and currencies. As the Subfund is a complex investment product, investors should be well informed and, in particular, have a good knowledge of derivatives. Investment Manager The Management Company has appointed Credit Suisse AG, Zurich, as Investment Manager to assist with the management of the Subfund. Subscription, Redemption and Conversion of Shares – Net Asset Value Subscription, redemption and conversion applications shall be accepted on each Friday and on the last Banking Day of each month (jointly referred to as “Trading Day”). Subscription, redemption and conversion applications must be received by the Central Administration or a Distributor by 3 p.m. (Central European Time) ten Banking Days prior to the Trading Day (as defined above). In accordance with Chapter 8, “Net Asset Value”, the Net Asset Value of the Subfund’s Shares is calculated on each Valuation Day. Subscription, redemption and conversion applications received before 3 p.m. (Central European Time) ten Banking Days prior to the Trading Day shall be settled on the Valuation Day following such Trading Day. Subscription, redemption and conversion applications received after this cutoff point shall be deemed to have been duly received on the next Banking Day and are thus settled on the Valuation Day following the next Trading Day. Performance Fee In addition to the Management Fee, the Management Company is entitled to a performance fee for the Subfund which is calculated on the basis of the unswung Net Asset Value of the Share Class concerned. The performance fee is calculated with each unswung Net Asset Value. The necessary provisions are made accordingly. A performance fee may only be levied if, on the Valuation Day following a Trading Day, the unswung Net Asset Value of a Share Class on a Trading Day used in the calculation of the performance fee exceeds all the unswung Net Asset Values previously achieved on a Trading Day (“high water mark”). If, on the Valuation Date following a Trading Day, the unswung Net Asset Value (prior to deduction of the performance fee) of a Share Class is greater than the preceding unswung Net Asset Values (prior to deduction of the performance fee) applicable to the previous Trading Days, a performance fee of 20% shall be deducted on the difference between the unswung Net Asset Value of the Share Class on the Valuation Day following the Trading Day and the high water mark. Calculation of the performance fee takes place on the basis of the Shares of the relevant Class that are currently in circulation. The performance fee calculated and set aside under the above method is paid at the beginning of the respective quarter. The levied performance fee cannot be refunded if the unswung Net Asset Value falls again after deduction of the fee. A performance fee is payable when the following condition applies: NAVt > HWM, If this condition is met, then: 0.2×[NAVt – HWM] × number of shares t where: NAVt = current unswung Net Asset Value (prior to deduction of the performance fee) on the Valuation Day NAV0 = initial unswung Net Asset Value HWM = high watermark = max {NAV0..NAVT‐1}, t = current Valuation Day T = Trading Day A hurdle rate is not provided for. Adjustment of the Net Asset Value (Single Swing Pricing) The Net Asset Value calculated in accordance with Chapter 8, “Net Asset Value” will be increased by up to a maximum of 2% per Share in the event of a net surplus of subscription applications or reduced by up to a maxi‐mum of 2% per Share in the event of a net surplus of redemption
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applications in respect of the applications received on the respective Valuation Day. Under exceptional circumstances the Company may, in the interest of Shareholders, decide to increase the maximum swing factor indicated above. In such case the Company would inform the investors in accordance with Chapter 14, “Information for Shareholders”.
CREDIT SUISSE SICAV ONE (LUX) 5, rue Jean Monnet L‐2180 Luxembourg
www.credit‐suisse.com